Once tax season is over, you may want to file your most recent records and discard older records to make room for the new ones. According to the IRS, personal tax records should be kept for three years after filing your return or two years after the taxes were paid, whichever is later.* (Different rules apply to business taxes.) It might be helpful to keep your actual tax returns, W-2 forms, and other income statements until you begin receiving Social Security benefits. The rules for tax … [Read more...]
Social Security and Medicare
Full Retirement Age If you were born in 1942 or earlier, you are already eligible for full Social Security benefits. The following chart will guide you in determining your full retirement age... Read More... Social Security & Medicare … [Read more...]
The Future of Social Security and Medicare: Here’s What Trustees Are Projecting
“Based on the "intermediate" assumptions in this year's report, the Social Security Administration is projecting that the cost-of-living adjustment (COLA), announced in the fall of 2019, will be 1.8%. This COLA would apply to benefits starting in January 2020.” Most Americans will eventually receive Social Security and Medicare benefits. Each year, the Trustees of the Social Security and Medicare Trust Funds release lengthy reports to Congress that assess the health of these important … [Read more...]
Quiz: How Much Have You Thought About Health and Health-Care Costs in Retirement?
“According to the 2018 Senior Report from America's Health Rankings, social isolation is associated with increased mortality, poor health status, and greater use of health-care resources. The risk of social isolation for seniors is highest in Mississippi and Louisiana and lowest in Utah and New Hampshire.” When planning for retirement, it's important to consider a wide variety of factors. One of the most important is health and its associated costs. Thinking about your future health and the … [Read more...]
Hidden Gem: HSAs in Retirement
When saving for retirement, you're probably aware of the benefits of using tax-preferred accounts such as 401(k)s and IRAs. But you may not be aware of another type of tax-preferred account that may prove very useful, not only during your working years but also in retirement: the health savings account (HSA). HSA in a nutshell An HSA is a tax-advantaged account that's paired with a high-deductible health plan (HDHP). You can't establish or contribute to an HSA unless you are enrolled in an … [Read more...]
The Financial Implications of a Chronic Illness
“There's no such thing as a one-size-fits-all financial plan for someone with a chronic illness. Every condition is different, so your plan must be tailored to your needs and challenges, and reviewed periodically. All investing involves risk, including the possible loss of principal, and there is no guarantee that any investment strategy will be successful. The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance … [Read more...]
Down the Donut Hole: The Medicare Coverage Gap
One of the most confusing Medicare provisions is the prescription drug coverage gap, often called the "donut hole." It may be clearer if you consider the gap within the annual "lifecycle" of Medicare Part D Prescription Drug Coverage. This also applies to drug coverage that is integrated into a Part C Medicare Advantage Plan. Annual deductible. Prescription drug plans typically have an annual deductible not exceeding $405 in 2018. Before reaching the deductible, you will pay the full cost of … [Read more...]
Medicare Open Enrollment Begins October 15
Medicare Open Enrollment begins October 15th. · Have questions about your coverage choices? · Just turned 65 and are new to Medicare options? · Need help with your prescription drug plan choices? · Are unsure if you’re eligible for EPIC? · Want to work with someone who is familiar with your situation? We can help you! Call Sharon or Elisabeth today to schedule an appointment. Available times will fill up quickly. What is the … [Read more...]
Should I enroll in a health savings account?
A health savings account (HSA) is a tax-advantaged account that you can establish and contribute to if you are enrolled in a high-deductible health plan (HDHP). Because you shoulder a greater portion of your health-care costs, you'll usually pay a much lower premium for an HDHP than you would pay for traditional health insurance. This allows you to contribute the premium dollars you're saving to your HSA. Then, when you need medical care, you can withdraw HSA funds to cover your expenses, or opt … [Read more...]
Is a nursing home the only option for long-term care?
If you or a loved one needs long-term care, other choices besides nursing home care may be available. Here are some of the other options. Home care Most people would prefer to stay in their homes as long as possible. Depending on your needs, you may only need help with some common daily living activities such as laundry, shopping, cooking, and cleaning. First, talk to your family to see if they can help with your needs. There are probably home health-care agencies that can assist you with … [Read more...]
