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Old 08-10-2017, 01:50 PM
 
Location: Northern panhandle WV
3,007 posts, read 2,174,073 times
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Quote:
Originally Posted by volosong View Post
My comments below are periphery to this discussion, but directly related. It is two 'gotcha' things that took me somewhat by surprise.

1.) For those just going onto Medicare when they retire. The amount you pay monthly for medicare is based on how much you earned the past year, not how much you earned this year. I have to pay almost $400 a month for Part B.

However, there is an appeal process. I filled out a form and turned it into the SS office. On the form, I explained that I had a "live changing event", (retirement), and that my income is almost nothing, (I have not yet applied for SS benefits). About a month later, I received a letter basically saying, "Okay, we believe you. You Medicare payment is now what everybody else pays." You do not get a refund for overpaying. Those funds will be applied to future month's payments.

2.) I'll have to go through the appeal process again next year because I withdrew a large chunk from my 403(b) to pay for the new retirement house. That will show this year's income back up there again, and bump my monthly Medicare payment back up to the tropopause. The appeal next year will state the reason as, "One-time distribution".

Something to be aware of.
We just went through this a couple months ago. We also won the appeal and they did refund from January.
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Old 08-10-2017, 03:51 PM
 
71,700 posts, read 71,801,099 times
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we sold an asset back in 2014 which we had no control of as far as selling . we were not retired yet , nor on medicare .

well in 2016 we got a whopper of a premium increase . for two of us it would have been an extra 600 a month on top of the regular premium .

we appealed and the auditor found reason to agree . so it was rolled back and reimbursed .

word to the wise is watch what you sell 2 years before going on medicare
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Old 08-10-2017, 04:39 PM
 
Location: Los Angeles area
14,018 posts, read 17,747,361 times
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Quote:
Originally Posted by mathjak107 View Post
we sold an asset back in 2014 which we had no control of as far as selling . we were not retired yet , nor on medicare .

well in 2016 we got a whopper of a premium increase . for two of us it would have been an extra 600 a month on top of the regular premium .

we appealed and the auditor found reason to agree . so it was rolled back and reimbursed .

word to the wise is watch what you sell 2 years before going on medicare

I got caught in that, but didn't know there was an appeal process. Oh well, it's water under the bridge now - it's been some years. It got messy and complicated though, because the increased monthly Medicare Part B premium was greater than my monthly Social Security retirement benefit, so I owed them every month. If I had just known they would bill me quarterly I would have relaxed and not worried about it. But no one seemed to know the answer to "What am I supposed to do now?".
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Old 08-10-2017, 04:41 PM
 
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just selling the asset is not grounds . our examiner really had to do some digging to find a reason .
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Old 08-10-2017, 04:42 PM
 
12,025 posts, read 5,136,942 times
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I've heard the same thing. It seems fairy odd to me that they would use your income from the previous year or two years before you turn 65 to determine how much your premiums are when it should be fairly obvious, many people retire at that age and their income last year would have nothing in common with their current income. There's no common sense in this.
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Old 08-10-2017, 04:45 PM
 
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medicare is ALWAYS based on income from 2 years prior. don't forget you have not sent in your taxes yet for the past year when your premium is set in january each year.

all they have is your tax return from 2 years ago at that point so that is what is used each year . in our case we went from an income for that year of more than 500k because of the sale down to a taxable income under 75k being retired and living off cash and dividends so she swung it on a life changing event by bending the definition a bit .
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Old 08-10-2017, 05:51 PM
 
2,687 posts, read 1,545,393 times
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This is the link to the form asking for reconsideration of the premium determination for Part B. https://www.ssa.gov/forms/ssa-44.pdf

Note especially page 8, and be aware that they did not mail back my retirement document originals. You should follow the instructions to the letter. Much better I think, to go in person if the lines are not too long, like they were in the DC area - 4+ hour wait with no place to sit. So I mailed.

IIRC, I used the same life changing event twice.
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Old 08-12-2017, 11:57 AM
 
6,885 posts, read 7,289,708 times
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Quote:
I'm asking because I'm delaying retirement to Jan 2018, so my ss doesn't get included and taxed on my $80k 2017 salary.
It's not for a while yet, but I'm planning to do this also.
Retire in one year, but not take any Soc Sec. until the next calendar year. (or two)

I just think it will help me keep various calculations more simple than otherwise might be the case.
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Old 08-12-2017, 12:23 PM
 
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Keep in mind that a couple can have up to $170,000 Modified Adjusted Gross Income (MAGI) before any Part B surcharge kicks in. It's $85,000 for a single person.
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Old 08-12-2017, 12:28 PM
 
71,700 posts, read 71,801,099 times
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Quote:
Originally Posted by bigbear99 View Post
Keep in mind that a couple can have up to $170,000 Modified Adjusted Gross Income (MAGI) before any Part B surcharge kicks in. It's $85,000 for a single person.




that was in 2017. 2018 has some changes at lower incomes 133,501-160k will be seeing a higher jump up , along with 160k-214k plus .


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