Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 04-03-2014, 03:55 PM   #21
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Chuckanut's Avatar
 
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 6,337
Quote:
Originally Posted by pb4uski View Post
For a retired single person to have a MAGI of $160-170k in my mind that is a nice problem to have. Sign me up for that any day, I'll gladly pay the higher Medicare premiums and taxes.
+1

Truly a 1% problem. Or maybe a 5% problem at worst?
__________________

__________________
The worst decisions are usually made in times of anger and impatience.
Chuckanut is online now   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-03-2014, 04:38 PM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,490
Quote:
Originally Posted by FIRE'd@51 View Post
The Roth is probably the best option as of now. Of course, in the future they may well include Roth withdrawals in MAGI and allow a deduction later (similar to LT gains and qualified dividends).

I'm just saying the analysis isn't as trivial as you make it sound.
I guess I'll just agree to disagree with you on this one. At worst for an individual, the surcharge is ~1.7% of MAGI.

Do you really think that an individual who in retirement has a MAGI of $214,000 and is likely paying federal income taxes at the 33% marginal rate is going to be bothered by having to pay a $3,600 Medicare surcharge? Annoyed, yes; but if it were me I wouldn't view it as a big deal. I would be much more annoyed at the 33% marginal tax rate.
__________________

__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is offline   Reply With Quote
Old 04-03-2014, 05:03 PM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
braumeister's Avatar
 
Join Date: Feb 2010
Location: Northern Kentucky
Posts: 8,636
Quote:
Originally Posted by memejipakid View Post
do you see federal tax rates increasing from 25% bracket for income that now falls within the current 25% bracket?
That will be up to our elected Congresscritters. Nobody knows.
__________________
braumeister is online now   Reply With Quote
Old 04-03-2014, 05:43 PM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
Quote:
Originally Posted by calmloki View Post
Still not clear to me whether a person applying for medicare this year with a low 2012 income will pay low medicare premiums forever or whether Medicare monitors annual income and adjusts premium surcharges as required.
Your annual premium is based on your income two years prior. It is checked each and every year so if your income is varying, your Part B and Part D premium will change as well.
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 04-03-2014, 06:08 PM   #25
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
braumeister's Avatar
 
Join Date: Feb 2010
Location: Northern Kentucky
Posts: 8,636
Social Security bases the IRMAA on your tax return, which is why there is a delay, usually two years.
__________________
braumeister is online now   Reply With Quote
Old 04-03-2014, 06:10 PM   #26
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,387
Quote:
Originally Posted by Zantastic View Post
The president's 2015 budget calls for the 85k level to be frozen past 2019 until 25% of beneficiaries are paying the higher amount. If that gets approved a lot of us will be paying higher Medicare premiums down the road.
A lot of us are paying them right now, and some of us have been paying them at least some years for a while.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 04-03-2014, 06:21 PM   #27
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
calmloki's Avatar
 
Join Date: Jan 2007
Location: Independence
Posts: 5,460
Quote:
Originally Posted by youbet View Post
Your annual premium is based on your income two years prior. It is checked each and every year so if your income is varying, your Part B and Part D premium will change as well.

That is a clear and unambiguous answer. Have you considered a career with the SS handy dandy phone answer bank? Thank you, and I hope you are correct.
__________________
calmloki is offline   Reply With Quote
Old 04-04-2014, 12:36 PM   #28
Recycles dryer sheets
 
Join Date: Jan 2007
Posts: 398
Quote:
Originally Posted by pb4uski View Post
For a retired single person to have a MAGI of $160-170k in my mind that is a nice problem to have. Sign me up for that any day, I'll gladly pay the higher Medicare premiums and taxes.
An interesting perspective. However, I do not believe it is consistent with early retirement. Clearly, most people who retire early do not believe this is a nice problem to have. If they did, they would not retire early. They would keep working to increase their retirement income. Yes, there are exceptions. But in general, a high income doesn't come by magic. It is a result of years and years of incredibly difficult and stressful work. People so eager to sign up for the higher MAGI will keep working.

I bet the guy in the Cadillac commercial believes it is a nice problem to have.
__________________
Shawn is offline   Reply With Quote
Old 04-04-2014, 01:31 PM   #29
Thinks s/he gets paid by the post
ivinsfan's Avatar
 
Join Date: Feb 2007
Posts: 2,201
My DH just signed up for Medicare this year and I don't remember any income related questions...does this means that SS/Medicare sync up your tax return info every year to your SS/Medicare payments?

I'm just curious about this, because when you participate in the farm program as we do, you have to sign a consent waiver every year to let USDA access your personal tax returns.
From what I read here it's happening with SS/Medicare too but no consent from the individual is needed. I understand that they can access your SS info because it's the same department, but I wonder how they just access your tax return. Am I missing something?
__________________
ivinsfan is offline   Reply With Quote
Old 04-04-2014, 01:41 PM   #30
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
braumeister's Avatar
 
Join Date: Feb 2010
Location: Northern Kentucky
Posts: 8,636
Quote:
Originally Posted by ivinsfan View Post
does this means that SS/Medicare sync up your tax return info every year to your SS/Medicare payments?
That's right.
Here's a pdf brochure that explains it:
Medicare Premiums: Rules For Higher-Income Beneficiaries
__________________
braumeister is online now   Reply With Quote
Old 04-04-2014, 01:44 PM   #31
Thinks s/he gets paid by the post
ivinsfan's Avatar
 
Join Date: Feb 2007
Posts: 2,201
Quote:
Originally Posted by braumeister View Post
That's right.
Here's a pdf brochure that explains it:
Medicare Premiums: Rules For Higher-Income Beneficiaries
Thanks for posting that link, since this is his first year under Medicare, I was a little concerned we might have overlooked something important. Still getting used to Medicare rules and regs!
__________________
ivinsfan is offline   Reply With Quote
Old 04-04-2014, 07:45 PM   #32
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,490
Quote:
Originally Posted by Shawn View Post
An interesting perspective. However, I do not believe it is consistent with early retirement. Clearly, most people who retire early do not believe this is a nice problem to have. If they did, they would not retire early. They would keep working to increase their retirement income. Yes, there are exceptions. But in general, a high income doesn't come by magic. It is a result of years and years of incredibly difficult and stressful work. People so eager to sign up for the higher MAGI will keep working.

I bet the guy in the Cadillac commercial believes it is a nice problem to have.
Shawn, WTF are you talking about? Your post is poppycock. I'm early retired. Are you? WADR you don't know squat.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is offline   Reply With Quote
Old 04-04-2014, 09:26 PM   #33
Recycles dryer sheets
 
Join Date: May 2011
Posts: 272
Quote:
Originally Posted by pb4uski View Post
Shawn, WTF are you talking about? Your post is poppycock. I'm early retired. Are you? WADR you don't know squat.
WADR? What is that? No need to get offensive.
__________________
sanfanciscotreat is offline   Reply With Quote
Delay Social Security, Pay Higher Medicare?
Old 04-04-2014, 10:19 PM   #34
Recycles dryer sheets
 
Join Date: Mar 2014
Posts: 257
Delay Social Security, Pay Higher Medicare?

I still work but my husband is retired and is on Medicare. He pays the extra charge for the Medicare premiums. Medicare does monitor your IRS tax returns and sends a statement delineating your premium. It's worth it - we've had to use it.
__________________
iac1003 is offline   Reply With Quote
Old 04-04-2014, 10:27 PM   #35
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 3,863
Quote:
Originally Posted by sanfanciscotreat View Post
WADR? What is that? No need to get offensive.
With all due respect.
__________________

__________________
Animorph is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Social Security~ Pays to delay says Scott Burns mickeyd FIRE and Money 65 11-26-2007 01:12 PM
MOVED: Delay Pension and/or Social Security Cut-Throat FIRE and Money 0 01-26-2007 08:39 AM
SS benefits, delay taking Social Security, Scott Burns article landover FIRE and Money 11 11-29-2005 06:58 PM

 

 
All times are GMT -6. The time now is 11:08 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.