Medicare Costs and SurchargesRetirement Tax Planning Social Security
In this video I’m talking about Medicare costs and surcharges - how to avoid the medicare cost cliff. Unlike tax brackets where your taxes go up progressively with income. Medicare can impose a surcharge for an entire year if your income falls only $1 dollar above certain thresholds. It’s called IRMAA and you need to know what it is about. So how is it possible that $1 dollar of additional income can cause Medicare premiums to go up for a full year? Well medicare has a base cost and then it imposes surcharges if your income goes above certain thresholds. Unlike a tax, which is a percent of income, the medicare surcharge is simply an additional higher cost. So going above these income thresholds by only ONE dollar can cause a substantial increase in medicare premiums for an entire year. It’s literally an income “Cliff” not a marginal tax. This surcharge has the cute little name of IRMAA and it is very important to plan ahead for it. The best way to talk about this is to show you an example of how Medicare and “IRMAA” can effect the early years if retirement and beyond.
Hi Folks I’m Dan Lohmar CFP with United Wealth Management where we specialize in PRAP management and financial planing for pilots at United Airlines. And like may of you, my partner Alan Bewley and I are both pilots for United. WELCOME to my video on Medicare and taxes.
United Wealth Management specializes in PRAP Management and financial planning for pilots at United Airlines. Dan Lohmar and Alan Bewley are the advisors at UWM and both of them are United pilots. United Wealth Management has no affiliation with United Airlines.