Medicare Questions & Answers: Retirement
Retirement Q&A
Showing 8 questions
I'm retiring next year - do I need to do anything with my Medicare?
If you're retiring next year and turning 65, you'll need to sign up for Medicare (Part A and Part B) through Social Security, either online or by contacting your local office, to avoid potential gaps in coverage or penalties.
What role do annuities play in retirement planning?
Imagine having a reliable stream of income flowing in during your retirement. That's the magic of annuities! You can purchase an annuity with a lump sum or through regular payments, and it can provide a guaranteed income stream throughout your retirement. Some annuities even offer lifetime income, meaning you'll receive regular payments no matter how long you live. This can be a game-changer for supplementing Social Security and other retirement income, allowing you to live comfortably and worry-free.
What do I need to do if I didn't take Medicare at 65 and am now retiring?
A few things need to happen AHEAD of your retirement date. First, once you know the date you are retiring you will need to apply for Medicare Part B. You will need to create a 'special enrollment period' as you are (most likely) outside your turning 65 enrollment period. You will need to fill out Medicare Forms: CMS L564 and CMS 40B. CMS L564 is partly filled out by you and then the remainder is completed by your employer. It explains that you are retiring and losing employer coverage. CMS 40B is your application for Medicare Part B. It, along with CMS L564, explains to Medicare that you are losing coverage through your employer and now need to elect your Medicare Part B benefits.
I'm still working at 67, and I don't know if I need Part B. Why is something so basic so hard to figure out?
It seems hard but when you know the specifics you can make the right decision for you!If you work for a company with 19 or more employees you can stay on that work plan until you retire and then get Part B! Work with someone like me-who works with Medicare Planning every day for clients! We give great information so folks can make good decisions!
Will Medicare cover everything my current employer plan does?
Medicare may NOT cover all that your current employer plan does or has in the past. It is a great idea to always compare your current employer Health Plan to your Medicare plan options to find out what plans in your area cover.
Can I use a health savings account (HSA) to pay Medicare premiums after I retire?
Yes, absolutely. In addition to paying Medicare Part B, Part D, and Medicare Advantage (Part C) premiums, you can also use your HSA funds tax-free to cover out-of-pocket costs like copays, coinsurance, and deductibles for those plans. That includes copays at the pharmacy under Part D or doctor visit copays under a Medicare Advantage plan. HSA funds can also be used for dental, vision, and hearing expenses—even if Medicare doesn't cover them. Just remember, once you're enrolled in any part of Medicare, you can no longer contribute to your HSA, but you can continue to spend what you've already saved. It's a great preplanning tool for managing healthcare costs in retirement with tax advantages.
My income fluctuates significantly year to year from investment distributions. How can I avoid IRMAA surcharges when I have an unusually high-income year?
They use taxes from two years ago (so 2023's taxes for 2025), so you have time to prepare. The brackets change every year and they are tiered so if you just go over a little the penalty is is about $1,200 for the year. Work with your tax advisor if you will be near the current year's levels to reduce you income through things like charitable giving and other tax deductions. Balance the deduction spending against the expected penalty. To be honest, it's a great problem to have. Good work on the savings.
I worked for the federal government for 30 years and took early retirement. How does my federal retirement affect my Medicare options?
Well that depends on a lot of factors. If you are not 65 then you don't have an option to get on medicare unless you are diagnosed with a disability.If you are 65 and the your coverage will stop at 65 then you need to get on medicare part A and
B.
If you are 65 and the government is giving you lifetime coverage then you need to see if it is worth paying the medicare part B premium and adding medicare or just staying on your current coverage.