The following is an article published in the September 2021 issue of the Journal of Financial Planning. It is posted here with permission from the author, Greg Geisler, Ph.D., clinical professor of accounting at the Kelley School of Business at Indiana University (Bloomington). Greg is also an active member of the Hurlow Wealth Management Group's Financial Planning Committee, which meets quarterly to discuss planning topics and how to effectively implement them in the real world with our clients.
How to Avoid Paying Higher Medicare Premiums
the First Two Years After Retiring
By Greg Geisler, Ph.D.
Retirees at the upper-middle-income or upper-income levels often pay higher Medicare premiums. There is an opportunity available for many such retirees to either completely avoid or significantly reduce this additional cost at the start of their retirement. This opportunity can save some single retirees on Medicare anywhere from approximately $1,700 to $9,500. This opportunity can save some married retirees, if both are on Medicare and file one joint income tax return, anywhere from approximately $3,400 to $19,000. This article focuses on how to execute this opportunity and the amount of savings as a result.
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