You’ll be turning 65 in the next several months, so it may be time to consider your strategy for Medicare benefits. You can apply for original Medicare (Parts A and B) at age 65 whether you have retired or not. For Part A (hospital insurance), premiums have no charge for the majority of Americans, even those who already have health coverage. Part B (medical insurance) pays for doctors’ services, outpatient care, and other miscellaneous medical services.1 You may be interested in a Medicare Advantage (MA) plan, one that brings you Parts A and B, and in many cases, Part D prescription drug coverage. Different MA plans might offer you other benefits, such as vision, hearing, and dental, designed to help you maintain your health, increase your physical activity, and more.1 There’s a slight twist, however, especially if you are looking to delay enrolling in Medicare in order to keep contributing to your Health Savings Account (HSA). For example, once you enroll in Medicare Part A and/or B, you can no longer contribute pre-tax dollars to your HSA.2 Keep in mind that after age 65, you’ll just have to pay income taxes if you spend money from your HSA. If you’re under age 65, though, and you use money from your HSA on non-qualified expenses, you may have to pay ordinary income tax and be subject to a 20% penalty on the withdrawal as well. It’s a good idea to check with your tax professional for specific rules regarding your particular state. Whatever you have in mind, please contact our office if you have questions about your choices. We can help you get your hands on the most up-to-date information – so you can make an informed decision. |
1. Medicare.gov, July 21, 2020 2. MedicareInteractive.org, 2020 |
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. |
