Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 03-27-2015, 04:35 PM   #21
Thinks s/he gets paid by the post
Brett_Cameron's Avatar
 
Join Date: May 2011
Location: South Eastern USA
Posts: 1,010
We handled the change in Income-related monthly adjustment at the Social Security office. Had to take copy of tax return showing reduction in income. The ruling was immediate and they refunded the adjustment amount for the current year.

Seemed pretty efficient.
__________________

__________________
All that glitters is not gold. -G. Chaucer, W. Shakespeare
All that is gold does not glitter. -J.R.R. Tolkien
Brett_Cameron is offline   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 03-27-2015, 04:39 PM   #22
Thinks s/he gets paid by the post
 
Join Date: Mar 2010
Location: Kerrville,Tx
Posts: 2,724
Quote:
Originally Posted by Tadpole View Post
Well, Hermit, I would imagine I have spent about 20 hours talking with Medicare in the past few months. Even so, there are still two me's and two Medicare B withdrawals, one from my pension check and one from my SS check. Yes, this two tailed tadpole has two Medicare numbers and no one seems willing to just cancel one of the two. (Even though they promise to do so each time I call.) By the way, did you know that if you call to check on these things, they get to reset their deadline to a start time of the most recent call?
Call your congresspersons local office. This is one of the things they handle, and a call from a staffer goes thru different channels. Or you senator whichever you like. It tends to get better service.
__________________

__________________
meierlde is offline   Reply With Quote
Old 03-27-2015, 07:45 PM   #23
Thinks s/he gets paid by the post
 
Join Date: Oct 2012
Location: Colorado Mountains
Posts: 2,145
Quote:
Originally Posted by Tadpole View Post
... By the way, did you know that if you call to check on these things, they get to reset their deadline to a start time of the most recent call?
Somehow, that does not surprise me!
__________________
Hermit is online now   Reply With Quote
Old 03-27-2015, 09:00 PM   #24
Thinks s/he gets paid by the post
 
Join Date: Feb 2011
Posts: 1,629
Quote:
Originally Posted by M Paquette View Post

Similar HMO coverage for a 65 and up senior not eligible for Medicare in my area lists at $1141.50 a month. It would appear that even with some sort of means adjustment the prices are not terribly out of line....

Not a fair financial comparison. Any analysis of comparative "price" of Medicare should include amortization of the Medicare income taxes paid over all of one's w#rking years. Plus the higher cost of medical services forced on other insured (and self-pay) patients during that w#rking lifetime due to historically low Medicare payment rates- even below the cost of care delivery in many cases. (Most hospitals and docs would literally be bankrupt on 100% Medicare practice). And don't forget to add on cost of a Medicare Supplement plan since Medicare Advantage is being eased out in many areas by ACA funding cuts (er...."cost savings" ).

And IMHO it would be a huge financial planning mistake to think those IRMAs won't rise dramatically over coming years, including both lowering the income thresholds and increasing rates. That is unless the Feds enact some meaningful health care cost containment strategies
__________________
ERhoosier is offline   Reply With Quote
Old 03-27-2015, 09:49 PM   #25
Moderator Emeritus
 
Join Date: Oct 2007
Posts: 4,929
Quote:
Originally Posted by ERhoosier View Post
Not a fair financial comparison. Any analysis of comparative "price" of Medicare should include amortization of the Medicare income taxes paid over all of one's w#rking years...
Speed readers...

That pay-in is what buys you Part A coverage, a bit over $400 a month. You might not have noticed, but I was talking about the equivalent cost of Medicare for someone who did not have Medicare credits, but had to use the 'buy-in' option.

Quote:
Just as an observation, even if a person had to come up with their own Part A contribution at about $400 a month (Medicare buy-in for someone with no credits), plus a high income Part B charge at, say, $600 a month, and a pretty fat Part D plan at $150 a month, that's $1150 a month for a pretty low deductible and copay insurance plan.
Next time, I'll bracket it with the <BLINK> tag...
__________________
M Paquette is offline   Reply With Quote
Old 03-27-2015, 10:37 PM   #26
Thinks s/he gets paid by the post
 
Join Date: May 2014
Posts: 3,002
Quote:
Originally Posted by Brett_Cameron View Post
We handled the change in Income-related monthly adjustment at the Social Security office. Had to take copy of tax return showing reduction in income. The ruling was immediate and they refunded the adjustment amount for the current year.

Seemed pretty efficient.

We've had to do this 2 years in a row - last May when I retired and DS filed for Medicare (they based the IRMA on our 2012 income which was a peak year) and again this year. A few phone calls and forms fixed it. I think we did go through the rigmarole of filling out a form they told us to complete then being told it was the wrong form.
__________________
athena53 is online now   Reply With Quote
Old 03-28-2015, 07:21 AM   #27
Thinks s/he gets paid by the post
 
Join Date: Mar 2011
Posts: 3,708
Quote:
Originally Posted by Fermion View Post

Means testing via income is fairly easy to negotiate around. Means testing based on assets is a lot harder.
But not impossible. IMHO going after the wealthy is most often a fool's errand; it feels good but they have too many options and there's just not enough of them to make a big difference.
__________________
Living well is the best revenge!
Retired @ 52 in 2005
marko is offline   Reply With Quote
Old 03-28-2015, 09:35 AM   #28
Thinks s/he gets paid by the post
 
Join Date: May 2014
Posts: 3,002
Quote:
Originally Posted by marko View Post
But not impossible. IMHO going after the wealthy is most often a fool's errand; it feels good but they have too many options and there's just not enough of them to make a big difference.
Yeah, I have these discussion on FaceBook occasionally. "Take away all the pensions members of Congress get and give the $$ to Social Security recipients!" And how much would that come out to per SS recipient, exactly? People also don't understand the massive "migrations" that occur for tax reasons. Last I heard, a lot of French were getting Belgian citizenship so they wouldn't be taxed under French law.
__________________
athena53 is online now   Reply With Quote
Old 03-28-2015, 09:44 AM   #29
Thinks s/he gets paid by the post
 
Join Date: Mar 2011
Posts: 3,708
Quote:
Originally Posted by athena53 View Post
People also don't understand the massive "migrations" that occur for tax reasons. Last I heard, a lot of French were getting Belgian citizenship so they wouldn't be taxed under French law.
Yeah. back in the 60s and 70s, we called them "tax exiles"
__________________
Living well is the best revenge!
Retired @ 52 in 2005
marko is offline   Reply With Quote
Old 03-28-2015, 10:56 AM   #30
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,132
Quote:
Originally Posted by athena53 View Post
Yep- DH and I are paying the IRMA (Income-related monthly adjustment) on his Medicare B and D premiums because I was working till mid-2014.
I've not paid any attention to this but now we are getting closer to Medicare age I guess I should. Does the IRMA income include ROTH conversions? If so I guess I'll need to take into account the extra premium costs as part of ROTH conversions between age 65 and 70.
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is offline   Reply With Quote
Old 03-28-2015, 11:01 AM   #31
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,132
Quote:
Originally Posted by Alan View Post
I've not paid any attention to this but now we are getting closer to Medicare age I guess I should. Does the IRMA income include ROTH conversions? If so I guess I'll need to take into account the extra premium costs as part of ROTH conversions between age 65 and 70.
I guess it does include ROTH conversions as it is based on MAGI. Oh well, something else to think about.

Quote:
If you file your taxes as “married, filing jointly” and your
MAGI is greater than $170,000, you’ll pay higher premiums
for your Part B and Medicare prescription drug coverage.
If you file your taxes using a different status, and your
MAGI is greater than $85,000, you’ll pay higher premiums.
(See the chart on pages 8-9 for an idea of what you can
expect to pay.)
http://www.ssa.gov/pubs/EN-05-10536.pdf
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is offline   Reply With Quote
Old 03-28-2015, 11:02 AM   #32
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: 8,620
Quote:
Originally Posted by Alan View Post
Does the IRMA income include ROTH conversions?
Yes.
It also includes tax-exempt income.
Nasty.
__________________
braumeister is offline   Reply With Quote
Old 03-28-2015, 11:08 AM   #33
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,386
Quote:
Originally Posted by Alan View Post
I've not paid any attention to this but now we are getting closer to Medicare age I guess I should. Does the IRMA income include ROTH conversions? If so I guess I'll need to take into account the extra premium costs as part of ROTH conversions between age 65 and 70.
It's taken from "adjusted AGI", which does include any retirement distributions, including those intended for Roth conversions. The adjustments as best I can remember all bump up the figure. People are talking as if this is new, but Medicare parts B and D have been income tested for some years now. This just seems like an attempt to increase the take, but we don't really know yet. At any rate, if one is solvent, he/she will pay.

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 03-28-2015, 09:49 PM   #34
Thinks s/he gets paid by the post
 
Join Date: Feb 2011
Posts: 1,629
quote...."....That pay-in is what buys you Part A coverage, a bit over $400 a month. You might not have noticed, but I was talking about the equivalent cost of Medicare for someone who did not have Medicare credits, but had to use the 'buy-in' option."

I did understand your comment. My response was phrased poorly- too broad. I should have clarified that one can still pay Medicare income tax for some years (up to 30 qtrs) and get hit with that $400+ contribution. Paying for "only" 31-39 qtrs still means getting charged a $200+ Part A contribution. Point is that many who must pay that full Part A contribution have also paid $$$ in past Medicare taxes.
__________________
ERhoosier is offline   Reply With Quote
Old 03-29-2015, 12:39 PM   #35
Moderator Emeritus
 
Join Date: Oct 2007
Posts: 4,929
Quote:
Originally Posted by ERhoosier View Post
I should have clarified that one can still pay Medicare income tax for some years (up to 30 qtrs) and get hit with that $400+ contribution. Paying for "only" 31-39 qtrs still means getting charged a $200+ Part A contribution. Point is that many who must pay that full Part A contribution have also paid $$$ in past Medicare taxes.
That's a mere legislative artifact, the result of electing persons who cannot understand simple algebra and substitute a table of thresholds for a terse linear equation. It is readily corrected by upgrading those who are supposed to legislate.
__________________
M Paquette is offline   Reply With Quote
Old 03-29-2015, 06:50 PM   #36
Thinks s/he gets paid by the post
 
Join Date: Feb 2011
Posts: 1,629
Quote:
Originally Posted by M Paquette View Post
That's a mere legislative artifact, the result of electing persons who cannot understand simple algebra and substitute a table of thresholds for a terse linear equation. It is readily corrected by upgrading those who are supposed to legislate.
Similar thresholds exist in the subsidy 'cliffs' in ACA.
Forgive my pessimism in failing to see any correction on the foreseeable horizon. The need to upgrade those who are supposed to legislate has persisted for some years now.
__________________
ERhoosier is offline   Reply With Quote
Old 03-29-2015, 08:44 PM   #37
Confused about dryer sheets
 
Join Date: Mar 2015
Posts: 7
In addition to accelerating the income levels that pay a higher income-related monthly adjustment, this bill also permanently eliminates 10 years of inflation indexing of those income levels. The original legislation that implemented these premium adjustments also included inflation adjustments such that the original income level of $80,000 had grown to $85,000 by 2010. (This was based upon a comparison of the average 12 month CPI from August of 2009 to that in August of 2006.)

The Affordable Care Act froze the income levels at the 2010 amounts for 10 years. However, at the end of the ten years, the inflation indexing was to be reinstated using the original calculation. So the 12 month average CPI from August of 2019 would be compared to that of August of 2006.

This new bill sets the starting income level at the $85,000 amount for 2018 and 2019 and restarts inflation indexing by comparing each new year to the CPI from 2018. Since 2018 is essentially set at 2010's amount, which used the CPI for August of 2009, we've lost 10 years of inflation indexing. How much difference will that make? Well, we are five years into the freeze right now. If 2015 had been indexed according to the original legislation (pre-ACA), the first bump for IRMA would be at $93,000 ($186,000 for joint) this year.

The plan is to have many more people paying the income-related adjustments, and this bill will certainly accomplish that.
__________________
Never2L8 is offline   Reply With Quote
Old 03-31-2015, 03:18 AM   #38
Full time employment: Posting here.
 
Join Date: Mar 2008
Posts: 654
I'm so out dated and maybe a little PO'ed that I haven't gotten over the fact that my SS will be taxed at the 80% level. What frigging genius politician came up with that crap <smile>.
Steve

PS. good to see you all interested in this subject!!!
__________________
Stevewc is offline   Reply With Quote
Old 03-31-2015, 08:14 AM   #39
Thinks s/he gets paid by the post
 
Join Date: Jan 2006
Posts: 2,933
Quote:
Originally Posted by Stevewc View Post
I'm so out dated and maybe a little PO'ed that I haven't gotten over the fact that my SS will be taxed at the 80% level. What frigging genius politician came up with that crap <smile>.
Steve

PS. good to see you all interested in this subject!!!
up to 85% of SS may be taxed at your tax rate; not taxed at 85%.
__________________
kaneohe is offline   Reply With Quote
Old 03-31-2015, 10:11 AM   #40
Thinks s/he gets paid by the post
sengsational's Avatar
 
Join Date: Oct 2010
Posts: 3,844
Quote:
Originally Posted by Never2L8 View Post
...
The plan is to have many more people paying the income-related adjustments, and this bill will certainly accomplish that.
Wow, that is one "meaty" first post!

Sounds like rather than make the tax increase clear, the goal is to obfuscate it to the point of being understandable only by the very patient. So much harder for voters to use to beat the politicos with..."you signed a bill that (blah blah) 2009 CPI (blah blah) ten years (blah blah)" just doesn't work as well as "you signed a bill that increased the rate from 5.3% to 7.4%".
__________________

__________________
sengsational 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
Means-testing for Medicare part of GOP Debt Limit Plan jon-nyc Health and Early Retirement 7 09-27-2013 01:19 PM
On SS means testing veremchuka FIRE and Money 39 08-06-2012 01:10 PM
Means testing SS wolfbay FIRE Related Public Policy 80 01-27-2012 09:11 AM
Means Testing future risk? Bimmerbill Young Dreamers 8 09-21-2008 01:10 PM

 

 
All times are GMT -6. The time now is 07:04 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.