warning -sell any assets you want to sell at least 3 years before medicare

M

mathjak107

Well-known Member
Location
bayside ,queens , ny
so two years ago we were not retired nor were we on medicare .

our real estate partnership sold some commercial lease rights back in 2014 and we had no control over the sale as we had senior partners .

well last january when my wife went on medicare we got a notice that because of the sale in 2014 her premiums were going to be a whopping 300% more . they were jumping from the 104.50 to 399.50 a month .

if both of us were on medicare the increase would have been 600 per month .

medicare goes back two years and retired or not , on medicare or not , that is the income used .

we did appeal it and won a roll back on technicality's but it was really up to the whim of our auditor at ss .

so make sure anything you want to sell that will generate big capital gains , you sell more then 2 years before medicare age .

also , in 2018 they are adding more income brackets where if you exceed the magi you will pay more for medicare . so that means anything you sell this year can burn you if it brings your magi income high emough .
 
here are the changes in 2018 that will be using your 2016 income

you can see a new income bracket was added , the 160k to 214k bracket now gets an increase . while these income levels sound high , selling assets with decades of pent up gains can easily trigger some of them .

since medicare users are expected to pay a large percentage of the costs of medicare that year , these are the percentages your income bracket will be expected to absorb . so someone in the 160 to 214k income range will be expected to pick up 80% of medicare costs along with those in the 214k range .



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Good to know though it's not a problem I have to worry about at this point but I love sharing financial information and someone else may benefit from this. Thank you.
 
Does income from a 401K plan count for this medicare case? Should I decide to payoff say a mortgage for example by taking out money from my 401K which for taxes is considered income. Its bad enough that will put me in a higher tax bracket for that year, but concerned because I am exactly 18 months away from 65 and do not want to run into this issue. And this will be the year used in my case.
 
Just getting in to looking at medicare costs. If the medicare premium I pay in 2018 will be based on 2016 adjusted income. Will 2019 premiums be based on 2017 income and so on? Or will I be locked in on the 2016 income adjustment? Thanks, getting closer and trying to figure it all out.
 
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