Taxes In Retirement

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Income Related Medicare Adjustment is a tax which increases your Medicare Part B and Part D premiums.  Consider these income levels before you apply for social security. 

The 2025 Levels are 

 Full Part B CoverageBeneficiaries who file individual tax returns with modified adjusted gross income:Beneficiaries who file joint tax returns with modified adjusted gross income:Income-Related Monthly Adjustment AmountTotal Monthly Premium AmountLess than or equal to $106,000Less than or equal to $212,000$0.00$185.00Greater than $106,000 and less than or equal to $133,000Greater than $212,000 and less than or equal to $266,00074.00259.00Greater than $133,000 and less than or equal to $167,000Greater than $266,000 and less than or equal to $334,000185.00370.00Greater than $167,000 and less than or equal to $200,000Greater than $334,000 and less than or equal to $400,000295.90480.90Greater than $200,000 and less than $500,000Greater than $400,000 and less than $750,000406.90591.90Greater than or equal to $500,000Greater than or equal to $750,000443.90628.90 

These brackets are based on your tax return from 2 years prior.  If you had a significant income adjustment or feel the IRAM imposed is incorrect you can challenge by completing the SSA-44 form

Roth conversations are a hot topic generally but not limited to  people ages 50-70.  Especially if your goal is a tax-free retirement. They have benefits and drawbacks Benefits Include  

• Distributions may be tax free once deferred for 5 years
• No Required Minimum Distributions unlike traditional IRAs at age 72
• No Mandatory 10 year liquidation for stretched inheritance 

Drawbacks

• Taxable the year traditional funds are converted to Roth status
• May not be most tax effecient rollover for future distributions

Social Security is an entitlement benefit we pay into from our 1st pay check to our last.  It is a very detailed programs that provides for the payor, payor's spouse, payor's surviving spouse and payor's former spouse.  

Myth #1 Your benefits are reduced when a former spouse is claiming off your benefits.  

Myth #2 There is an age you enter a "tax-free retirement" and can earn as much as you want without paying taxes.

The truth is once you reach your full retirement age you will no longer be subject to paying an income penalty for work income and receiving social security benefits.

Myth #3 

Long Term Care can be very costly and most is not covered by Medicare.  Fortunately we can use qualified funds to pay for qualified Long Term Care Expenses.

Probate expenses can add up quickly and take a long time to settle your estate.  Each state also has it's own probate process.  It makes sense to plan and title your assets properly to limit or possible avoid probate completely.

Customers have questions on how to apply for social security or enjoy a tax-free retirement . Display the most frequently asked questions, so everybody benefits.