NOT TAX ADVICE (and not legal advice): This article is educational only. We’re not tax advisors, and we’re not telling you how to file your taxes. Medicare/IRMAA outcomes depend on your full situation, and rules can change. Always coordinate decisions with your CPA/tax professional and Medicare resources.
Medicare premiums feel like they should be simple: you sign up, you pay the standard amount, and you move on with your life.
Then IRMAA shows up.
IRMAA (Income-Related Monthly Adjustment Amount) is the extra charge added to Medicare Part B and Part D when your income is above certain thresholds. And here’s the part that catches a lot of retirees off guard:
Your 2026 Medicare premiums are based on your 2024 income.
So even if you “retired in 2025” and your income dropped, you could still get hit with a 2026 IRMAA surcharge based on that earlier, higher-income year.
If you’re planning a move to the Hill Country, selling a home, doing Roth conversions, or simply living off a mix of accounts, the difference between “just under” and “just over” an IRMAA bracket can be thousands per year, per person.
Below are the most common IRMAA mistakes we see (especially around relocation and retirement-income planning), plus what to watch for in 2026.
First: What IRMAA is (in plain English)
IRMAA is a Medicare premium surcharge that applies to:
- Part B (doctor visits, outpatient care)
- Part D (prescription drug coverage)
Social Security determines whether you owe IRMAA using your Modified Adjusted Gross Income (MAGI) from two years prior (so 2024 MAGI → 2026 Medicare premiums).
A solid overview of how IRMAA works is here from Medicare/consumer sources:
- Medicare costs and premiums basics: https://www.medicare.gov/publications/11579-medicare-costs.pdf
- SSA IRMAA life-changing event appeal form (SSA-44): https://www.ssa.gov/forms/ssa-44.pdf
- 2026 bracket discussion/coverage (examples):
2026 IRMAA brackets (what triggers the surcharge)
The IRMAA brackets are based on 2024 MAGI and filing status. As published in major retirement planning outlets (see Kiplinger above), for 2026 the first “no IRMAA” thresholds are:
- Single: up to $109,000
- Married filing jointly: up to $218,000
Above those levels, your Part B premium and Part D surcharge step up in tiers.
The key planning takeaway isn’t memorizing every tier, it’s recognizing that IRMAA works like income cliffs: if you go just a bit higher, you can pay the full surcharge for that tier.
Common IRMAA mistakes that can surprise you in 2026
Mistake #1: Forgetting the “two-year lookback”
This is the #1 reason retirees get blindsided.
You might be living a calm, slower-paced life in Wimberley in 2026, but if your 2024 income was elevated (working, business sale, large gains, big conversion), that’s what Medicare is looking at.
Why it matters: People think, “I retired, so my premiums should drop.” Not automatically, at least not right away.
What to do instead: Build your retirement timeline with “IRMAA lag” in mind. If you’re in the last couple years of high earnings, it’s worth projecting 2024 income specifically, not just “retirement income in general.”
Mistake #2: A big home sale (or big capital gain) without an IRMAA conversation
A move to the Texas Hill Country often comes with a home sale. Sometimes it’s downsizing; sometimes it’s upgrading; sometimes it’s selling a long-held property with a meaningful gain.
Even when a home sale is mostly about lifestyle, the income ripple effects can carry into Medicare.
What to do instead: Before you list, run a rough scenario:
- What is your expected 2024 MAGI?
- Are there other income events in the same year (Roth conversion, RMDs, portfolio sales)?
- Are you close to an IRMAA threshold?
Internal read that’s relevant if you’re selling a home as part of a Wimberley relocation:
Mistake #3: Roth conversions done “all at once”
Roth conversions can be a powerful planning tool in retirement, but doing a large conversion in a single year can push your MAGI over an IRMAA threshold.
The common trap: You decide 2024 is “the year” to convert a big chunk, without realizing it could increase Medicare premiums in 2026.
What to do instead: Consider whether conversions can be:
- spread over multiple years, and/or
- coordinated with other income items so you’re not stacking everything into one IRMAA-triggering year.
If you want to read a related internal perspective on managing MAGI in a relocation context:
(Again: educational only, coordinate specifics with your tax pro.)
Mistake #4: Underestimating “small” income items that add up
Retirees often track the obvious income: pension + Social Security + withdrawals.
But IRMAA MAGI can creep up from multiple directions:
- capital gains from rebalancing or selling appreciated holdings
- fund distributions you didn’t “feel” like you chose
- interest and dividends
- one-time liquidity events
What to do instead: Check your projected MAGI late in the year (or multiple times per year if you’re actively making changes). That’s often when you can still adjust the timing of moves.
Mistake #5: Not planning ahead for RMDs
Required Minimum Distributions (RMDs) can feel far away… until they aren’t. When they start, they may bump your income enough to trigger IRMAA, especially when combined with Social Security and portfolio income.
What to do instead: Even if you’re a few years out, it’s worth forecasting:
- What will RMDs likely be?
- How might that interact with your other retirement income?
- Could that move you into an IRMAA tier later?
The goal isn’t “avoid income.” The goal is avoid surprise costs and build a smoother plan.
Mistake #6: Not realizing IRMAA is per person (even though joint income is used)
For married couples filing jointly, the bracket is based on household MAGI, but each spouse can pay the surcharge.
So if a couple crosses a threshold, the premium hit can feel doubled because:
- both spouses’ Part B premiums rise, and
- both may have a Part D adjustment, too.
What to do instead: When you model IRMAA, model it as a household expense with two premiums, not a single line item.
Mistake #7: Getting the IRMAA letter and assuming it’s final
If your income is lower now due to a life-changing event, you may be able to request a new determination.
The most common real-world example: you retired and your income dropped, but Medicare is still using your higher working-year income from two years ago.
Social Security’s form for this is SSA-44:
What to do instead: If you believe IRMAA is being applied based on income that no longer reflects your situation, ask about an appeal using SSA-44 and provide the documentation required.
(We can help clients coordinate the planning side and what questions to ask, but we don’t provide tax advice or represent you before the IRS.)
Mistake #8: Treating IRMAA as a “Medicare problem” instead of an income-planning problem
IRMAA isn’t just a Medicare checkbox. It’s a retirement cash-flow item that interacts with:
- withdrawal sequencing (which accounts you pull from, and when)
- big one-time spending decisions (renovations, gifts, helping family)
- investment changes that realize gains
- relocation timing and home transactions
In other words, IRMAA is often a symptom of an income spike, so the fix is usually better coordination.
A quick “IRMAA awareness” checklist for 2026
If you want a simple way to pressure-test your plan, ask yourself:
- Was 2024 a high-income year (work, business, big liquidity event)?
- Did we do (or plan) a major Roth conversion in 2024?
- Did we sell a home or other appreciated asset in 2024?
- Are we close to an IRMAA threshold, where “a little extra income” could push us over?
- If income dropped due to retirement, do we need to consider an SSA-44 appeal?
If any of these are “yes,” it’s worth a proactive review.
Why this matters for Wimberley (and the Hill Country) retirees
A lot of folks moving to Wimberley are doing it for the right reasons: nature, pace, community, and being close enough to Austin without feeling like you live in Austin.
But relocation years can also be “financially loud” years: home sales, portfolio repositioning, one-time expenses, and timing decisions.
If you want more context on the lifestyle + financial side of retiring here, start here:
- https://retireinwimberley.com/does-your-2026-social-security-cola-really-matter-how-rising-medicare-costs-impact-hill-country-living
- https://retireinwimberley.com/no-income-tax-vs-high-property-tax-which-is-better-for-your-wimberley-retirement
The bottom line
IRMAA isn’t “bad,” and it isn’t something you can always avoid. But it is something you can often anticipate.
The surprise usually comes from:
- the two-year lookback, and
- income stacking (conversions + gains + distributions + a big transaction) that pushes you over a bracket by a small amount.
A little forecasting goes a long way: especially if you’re making a big move or tightening up your retirement income plan.
Want a second set of eyes on your retirement income plan (including Medicare premium surprises)?
If you’re relocating to Wimberley (or already here) and want to sanity-check how withdrawals, conversions, and one-time events could affect Medicare costs, we can help you coordinate a plan: without guessing.
- Book a quick intro call: https://calendly.com/portafoliocapital/15min
- Learn more: https://portafoliocapital.com/
- Or call: (512) 593-8380
Required disclaimer
Schedule a call with a fiduciary financial advisor today: https://calendly.com/portafoliocapital/15min
Portafolio Capital Management dba Mau Sanchez Capital is a Registered Investment Adviser. This content is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any security. Advisory services are provided only pursuant to a written advisory agreement.
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