Do veterans pay IRMAA?
Veterans pay IRMAA by the same income rules as everyone — but with one major advantage: VA disability compensation is tax-free and excluded from the MAGI calculation, so it never pushes you into a bracket. Military pensions, TSP withdrawals, and a working spouse's income do count.
What counts, what doesn't
IRMAA surcharges key off modified adjusted gross income from two years back — 2024 returns set 2026 premiums, with the standard $202.90 rising through five tiers to $689.90 (full brackets), plus parallel Part D surcharges of $14.50–$91.00 for those holding drug plans. On the veteran ledger: excluded — VA disability compensation, at any rating. Included — military retirement pay, TSP and IRA withdrawals, civilian wages, a working spouse's income, capital gains. A retiree couple stacking pension + TSP + salary reaches the first cliff ($218,000 joint) more easily than most expect, and these are cliffs: one dollar over buys the entire tier.
Managing it
Income just dropped — retirement, a spouse's death, divorce? Form SSA-44 appeals the surcharge based on the life-changing event rather than the stale tax year. Longer-range, the timing of TSP withdrawals and Roth conversions is IRMAA planning by another name — squarely a conversation for a tax professional alongside any benefits review.
Related questions
Does a 100% VA disability rating exempt me from IRMAA?
Do both spouses pay the IRMAA surcharge?
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