A $18,960 annual annuity pushed one retiree's Medicare Part B premium up two IRMAA tiers, adding $2,435 in annual costs. IRMAA surcharges operate as cliffs, meaning one dollar above $137,000 triggers a full $202.90 monthly surcharge with no gradual phase-in. Social Security COLAs raise benefit payments without adjusting IRMAA thresholds, so inflation adjustments can inadvertently push retirees into higher Medicare brackets.
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Advisor.com's free matching tool pairs you with vetted fiduciaries from major national firms, all in under three minutes. See who you match with today. The headline number for a 73-year-old annuitant is straightforward.
Her contract pays $1,580 a month for life, or $18,960 a year. Less obvious is what that stream does to her Medicare bill once it appears on a tax return alongside Social Security, required minimum distributions, and interest income. In her case, it moved her modified adjusted gross income across two Income-Related Monthly Adjustment Amount thresholds, and her Part B premium reset accordingly.
The Centers for Medicare and Medicaid Services set the 2026 standard Part B premium at $202.90 a month for beneficiaries with a modified adjusted gross income of $109,000 or less on an individual return. The surcharge structure adds fixed dollar amounts on top of that base at each higher tier. A single filer with MAGI between $137,000 and $171,000 pays $405.80 per month, which is the second IRMAA tier above the standard rate.
The full 2026 schedule for single filers with standard Part B coverage: Most Americans suspect they're behind on retirement and never find out. Advisor.com's free matching tool pairs you in about three minutes with a vetted fiduciary advisor who can help you with investing, taxes, retirement, estate planning, and more. Find out where you stand.
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