A new retirement scan study has found that the Medicare costs linked to particular retirees may increase by as much 200%. High income retirees may be affected, because of the alterations in income brackets that determine what their premiums might be for part D or part B coverage.

Retirees who may find themselves in this category should avoid participating in a ROTH conversion in the two years prior to filing for Medicare, as this converted amount may be added to their modified adjusted gross income after it is taxed. Anyone who has a high deductible insurance plan should also evaluate the benefits of a health savings account for the tax benefits. However, the account cannot be added to once the patient has applied for Medicare.

Life insurance is another powerful tool that can be used for retirement, long term care, and estate planning purposes. Debt payments and income replacement can help to supplement this. Retirements may be eligible to purchase life insurance, using mandatory IRA distributions as a way to leave behind a legacy for their loved ones. In all of these complicated situations, it’s important to retain the services of an estate planning attorney.

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