An individual with 2019 MAGI below $88,000 and married couples filing a joint return with 2019 MAGI below $176,000 pay the base rate of $148.50.
The Medicare Part B surcharge
If your income is higher than $88,000/$176,000 in 2021, you pay more for Part B. Here’s the breakdown for 2021:
$207.90 per person monthly premium: Individuals with 2019 income above $88,000 and up to $111,000, and married couples with income above $176,000 and up to $222,000
$297.00 per person monthly premium: Individuals with 2019 income above $111,000 and up to $138,000, and married couples filing a joint return with income above $222,000 and up to $276,000.
$386.10 per person monthly premium: Individuals with 2019 income above $138,000 and up to $165,000, and married couples filing a joint return with income above $276,000 and up to $330,000.
$475.20 per person monthly premium: Individuals with 2019 income above $165,000 and less than $500,000, and married couples filing a joint return with income above $330,000 and less than $750,000.
Higher income households pay even more. The top 2021 Part B monthly premium of $504.90 is levied on individuals who had income of $500,000 or more in 2019, and married couples with income of at least $750,000.
IRMAA’s growing footprint and cost
Medicare estimates that the standard monthly Part B premium that is $148.50 this year could be more than $230 in 2029.
And as the tail end of the Baby Boomer generation hits 65, record numbers of enrollees will be in the crosshairs of the extra premium costs. And those extra costs are expected to be much higher as well.
This year, individuals in the first tier above the base rate pay an extra $59.40 a month ($207.90 to $148.50). By 2029, Medicare’s intermediate estimate is that the extra surcharge could be more than $90 a month per person for people in this payment tier.
Someone in the second tier above the base rate pays an extra $148.50 a month this year ($297.00 to $148.50). By 2029, the extra charge could be more than $230 a month per person, according to Medicare estimates.
Time to play catchup?
If all that just motivated you to save a bit more for retirement, keep in mind that the government gives the 50+ crowd leeway to stuff away more than younger folks. This year, anyone at least 50 can save up to $7,000 in an IRA, compared to the $6,000 limit for younger savers. And if you participate in a workplace retirement 401(k), you can contribute up to $26,000 this year if you are at least 50; that’s $6,500 more than what your younger colleagues are allowed to save.©2021 Rate.com. Visit at rate.com. Distributed by Tribune Content Agency, LLC.