CBO: Social Security Trust Fund Gone In 2029

The problem is that entitlement spending will grow faster than the economy and tax revenue, fueled by an aging population, rising health care costs and expanding ObamaCare enrollment.


Read More At Investor's Business Daily:
http://news.investors.com/politics/061615-757616-social-security-trust-fund-ends-in-2029-autopilot-spending.htm#ixzz3dLzNQCpA 

How Medicare Taxes Impact Upper-Income People

When you hear "Medicare Taxes," you probably don’t think about your investments. 

But these taxes affect many upper-income Americans with higher taxes on both wages and investment income. All the more reason to have a tax-smart financial plan in place.

There are TWO ways the Medicare Taxes affect upper-income people. 

First, a 3.8% Medicare surtax is levied on the lesser of net investment income or the excess of modified adjusted gross income (MAGI) above $200,000 for individuals, $250,000 for couples filing jointly, and $125,000 for spouses filing separately. 

Second, wages above $200,000 (individuals), $250,000 (joint filers), and $125,000 (spouses filing separately) will be subject to higher payroll taxes. 

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Medicare: 7 Things You Don't Know - #1. Not Everything Is Covered

Couples retiring at age 65 this year are expected to incur $220,000 in out-of-pocket health care costs on average during their retirement years, INCLUDING deductibles, co-payments and services NOT covered by Medicare such as dental, vision and podiatry expenses. 

The estimate DOES NOT include Long-Term Care (LTC) costs.

Source: Fidelity Investments’ 2014 Retirement Health Care Cost Estimate.

Medicare: 7 Things You Don't Know - #3. Health Savings Accounts No Longer Apply

Consumers can enroll in Medicare Part A, which covers hospitalization and is FREE, when they turn 65.

But once they enroll, they will NO longer be able to contribute to a Health Savings Account (HSA).

Medicare: 7 Things You Don't Know - #4. Part B Coverage Can Be Postponed

Consumers can postpone signing up for Medicare Part B, which covers doctors’ visits and outpatient services, if they have group health insurance from their current employer or their spouse’s current employer.

Medicare Part B costs most beneficiaries $104.90 per month in 2014.

Medicare: 7 Things You Don't Know - #5. URGENT! The Self-Employed Must Sign Up During the Initial Enrollment Period!

Those who are Self-Employed OR who work for small firms with 19 or fewer employees MUST sign up for Medicare Part B during the INITIAL 7-month enrollment period based on the date of their 65th birthday.


If they miss the deadline, they could be on the hook for 80% of their medical costs until Medicare coverage begins and face PERMANENTLY increased premiums.

Medicare: 7 Things You Don't Know - #6. Latest Tax Returns Determine Premium Surcharges

Monthly premium surcharges for Medicare Part B and Part D prescription drug plans are based on the latest tax return.

So your 2012 Tax Return filed in 2013 is the basis for the Medicare premiums you pay in 2014.

   These brackets are NOT adjusted for inflation, meaning more retirees could drift into the higher premium brackets each year.

Medicare: 7 Things You Don't Know - #7. Not All Investments Count As Income

A handful of investment products are NOT counted as INCOME by Medicare. 

They include distributions from health savings accounts and Roth IRAs and Roth 401(k) plans; proceeds from a reverse mortgage; income and loans from cash-value life insurance; and certain distributions from annuities in non-qualified accounts.

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10 Biggest Retirement Mistakes: #1. Not Planning for Medical Costs in Retirement

If you retire before you are eligible for Medicare at 65, finding health insurance can be difficult and expensive.

Many employers have eliminated subsidized retiree health benefits for former employees. You can extend employer coverage under COBRA for up to 18 months, but you’ll have to pay the full premium without any help from the boss.

Depending on your health, it might be cheaper to find an individual policy with a high deductible.

10 Biggest Retirement Mistakes: #8. Failing to Sign Up for Medicare Part B on Time

Once you are eligible for Medicare, you must enroll in Medicare Part B, which covers doctor’s visits and outpatient services, within three months of turning 65 or incur a late-enrollment penalty that permanently boosts your Part B premium by 10% for every year you delay.

The penalty is waived if you have health insurance from your or your spouse’s current employer, but is retroactive if you don’t enroll soon after your coverage ends.