Medicare Premiums

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yea even though I’m 47, we’ve had a HDHP and have been maxing out or HSA for year. Will come in quite handy for A, B, and D premiums. Though it doesn’t cover G we have hoarded thousands and thousands in receipts we can just get reimbursement from.

If you are high income you are foolish to have not built up your HSA over the years. We are sitting on 250k in HSA funds alone. triple tax advantaged. we will at least have 500k in that account when we need medicare and that’s conservative.

What kind of return do you get on that account? I think it depends on that vs. how the market performed. Sounds like OP will never spend that much on health anyway based on how they described the company provided supplemental insurance (full coverage).

i’m not that poster, but HSAs can have the same market returns as any account. Or you can get lucky and have bought NVIDIA with it or have purchased service now. or maybe the poster has had the account since 2004 when it was created.

However, i can see many many upsides to having this account even if you have employer provided supplemental. There are no guarantees that will be forever and it can also pay for long term care, in home care, and if you’ve been smart and have been documenting your expenses for year and years you can cash all that in. There are also a ton of medical expenses that can be very bifocal that insurance doesn’t cover, plus dental expenses can get wild when you age. The list goes on and on because ‘merica.

[Anonymous]

A+ Troll thread. OP comes in with a semi-innocuous but tone-deaf complaint, then comes back to taunt about not actually caring about the complaint because of their e-wealth. Well done, well done.

[Anonymous]

Anonymous wrote:A+ Troll thread. OP comes in with a semi-innocuous but tone-deaf complaint, then comes back to taunt about not actually caring about the complaint because of their e-wealth. Well done, well done.

Yea, I agree. She's just playing with us. Pathetic.

[Anonymous]

You could divorce your husband, which might drop you down into a bracket where you'd pay less.

Of course you might lose that cushy free Cadillac insurance that your husband's former employer provides for now.

You could probably still stay in the marital home and live in sin with the ex hubs.

But of course there'd be nothing stopping the hubs from moving in a hot young thing to replace you, they'd marry, she'd pop out a few kids, and become the new Mrs. Beneficiary of the Caddy Insurance and the cool grandma.

And that could get really uncomfortable really fast.

You'd die old and alone in the guest house with a lot of cats and a lot of bitterness, because if expensive Medicare makes you bitter, you are going to lose your mind in this scenario. But hey at least you'd have cheap Medicare.

[Anonymous]

Anonymous wrote:We are in the process of starting full retirement. Silly me to think Medicare Part B is free.

Today I received a letter telling us that our monthly premium for medicare will be over $629 a month for both myself and my spouse (an annual expense of over $15,000). This is extremely hard to swallow because for the past 15 years of my husband's employment, we paid no premiums, and our coverage pretty much ensured no out of pocket expenses at all with no deductible.

We generally use out of network providers who do not take Medicare, so it is really infuriating that we have to pay this money for insurance we will rarely use. The regular premium for most people is $185, but we get slapped with an adjustment based on our income. I feel like we are paying everyone else's insurance premiums while we won't even be tapping into medicare providers.

We have supplemental insurance provided by my husband's previous employer which will cost us nothing and provides the same coverage as before. So we will be paying nothing for the insurance we use most. It is crazy.

I know, first world problems.

55 yo retiree here. I have a similar problem that’s why I’m doing Roth conversions
now before I hit 63 yo (2 year look back for Medicare). I plan on having very little taxable income at 63 so Medicare premiums will be on the low side. Won’t have to worry about RMDs that could bump me up to the highest IRMAA and income tax brackets. May hit the first IRMAA bracket when the time comes because I can only convert so much before I’m in the high income tax brackets. You have to plan years in advance. Unfortunately too many people learn about IRMAA when it’s too late.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are in the process of starting full retirement. Silly me to think Medicare Part B is free.

Today I received a letter telling us that our monthly premium for medicare will be over $629 a month for both myself and my spouse (an annual expense of over $15,000). This is extremely hard to swallow because for the past 15 years of my husband's employment, we paid no premiums, and our coverage pretty much ensured no out of pocket expenses at all with no deductible.

We generally use out of network providers who do not take Medicare, so it is really infuriating that we have to pay this money for insurance we will rarely use. The regular premium for most people is $185, but we get slapped with an adjustment based on our income. I feel like we are paying everyone else's insurance premiums while we won't even be tapping into medicare providers.

We have supplemental insurance provided by my husband's previous employer which will cost us nothing and provides the same coverage as before. So we will be paying nothing for the insurance we use most. It is crazy.

I know, first world problems.

55 yo retiree here. I have a similar problem that’s why I’m doing Roth conversions
now before I hit 63 yo (2 year look back for Medicare). I plan on having very little taxable income at 63 so Medicare premiums will be on the low side. Won’t have to worry about RMDs that could bump me up to the highest IRMAA and income tax brackets. May hit the first IRMAA bracket when the time comes because I can only convert so much before I’m in the high income tax brackets. You have to plan years in advance. Unfortunately too many people learn about IRMAA when it’s too late.

OP here, yeah, that would have been impossible even if we tried. DH's base salary is $500K and on top of that we get stock grants, various reimbursements that are taxable, etc. Even without the stock option exercise (which was a smart move based on that stock price at the time), we would have been in the higher bracket. That said, that extra income sure comes in handy to help pay for future premiums.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are in the process of starting full retirement. Silly me to think Medicare Part B is free.

Today I received a letter telling us that our monthly premium for medicare will be over $629 a month for both myself and my spouse (an annual expense of over $15,000). This is extremely hard to swallow because for the past 15 years of my husband's employment, we paid no premiums, and our coverage pretty much ensured no out of pocket expenses at all with no deductible.

We generally use out of network providers who do not take Medicare, so it is really infuriating that we have to pay this money for insurance we will rarely use. The regular premium for most people is $185, but we get slapped with an adjustment based on our income. I feel like we are paying everyone else's insurance premiums while we won't even be tapping into medicare providers.

We have supplemental insurance provided by my husband's previous employer which will cost us nothing and provides the same coverage as before. So we will be paying nothing for the insurance we use most. It is crazy.

I know, first world problems.

55 yo retiree here. I have a similar problem that’s why I’m doing Roth conversions
now before I hit 63 yo (2 year look back for Medicare). I plan on having very little taxable income at 63 so Medicare premiums will be on the low side. Won’t have to worry about RMDs that could bump me up to the highest IRMAA and income tax brackets. May hit the first IRMAA bracket when the time comes because I can only convert so much before I’m in the high income tax brackets. You have to plan years in advance. Unfortunately too many people learn about IRMAA when it’s too late.

OP here, yeah, that would have been impossible even if we tried. DH's base salary is $500K and on top of that we get stock grants, various reimbursements that are taxable, etc. Even without the stock option exercise (which was a smart move based on that stock price at the time), we would have been in the higher bracket. That said, that extra income sure comes in handy to help pay for future premiums.

With that income you can afford it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are in the process of starting full retirement. Silly me to think Medicare Part B is free.

Today I received a letter telling us that our monthly premium for medicare will be over $629 a month for both myself and my spouse (an annual expense of over $15,000). This is extremely hard to swallow because for the past 15 years of my husband's employment, we paid no premiums, and our coverage pretty much ensured no out of pocket expenses at all with no deductible.

We generally use out of network providers who do not take Medicare, so it is really infuriating that we have to pay this money for insurance we will rarely use. The regular premium for most people is $185, but we get slapped with an adjustment based on our income. I feel like we are paying everyone else's insurance premiums while we won't even be tapping into medicare providers.

We have supplemental insurance provided by my husband's previous employer which will cost us nothing and provides the same coverage as before. So we will be paying nothing for the insurance we use most. It is crazy.

I know, first world problems.

55 yo retiree here. I have a similar problem that’s why I’m doing Roth conversions
now before I hit 63 yo (2 year look back for Medicare). I plan on having very little taxable income at 63 so Medicare premiums will be on the low side. Won’t have to worry about RMDs that could bump me up to the highest IRMAA and income tax brackets. May hit the first IRMAA bracket when the time comes because I can only convert so much before I’m in the high income tax brackets. You have to plan years in advance. Unfortunately too many people learn about IRMAA when it’s too late.

OP here, yeah, that would have been impossible even if we tried. DH's base salary is $500K and on top of that we get stock grants, various reimbursements that are taxable, etc. Even without the stock option exercise (which was a smart move based on that stock price at the time), we would have been in the higher bracket. That said, that extra income sure comes in handy to help pay for future premiums.

PP here, yup, I can think of worse problems to have. Doesn’t sound like Roth conversions would help you very much because you are already in very high income tax brackets. You’ll have to wait until your husband stops working which would theoretically be your lowest income and tax bracket. But I’m sure you have a lot of taxable passive investment income as well which may make it impossible to convert in the lower tax brackets. Sounds like you can afford those IRMAA premiums whether you like paying them or not.

I’m a huge fan of Roth vehicles for this very reason especially early in your career. Backdoor Roths and Mega Backdoor Roths when your income is too high to contribute directly.

Peter Thiel has a $5B Roth IRA and Ted Weschler has a $250M+ Roth IRA. Just smart investing and getting in early. All tax free on withdrawal.