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How Much Will You Pay for Your Part B?

· Healthcare,Medicare enrollment

Charlie is 64 and preparing for Medicare and retirement. He scans the internet availing himself with a multitude of minutiae in his attempt to bolster his balustrade for surviving retirement and living on a limited income. He weighs the pros and cons of a proposed buy out from the company, when to start his social security benefit and how to structure his debt with his future lifestyle.

Having lost over $60,000 in his 401k account overnight in the 2008 market fiasco, Charlie conservatively is only vested in guaranteed markets to maintain his retirement portfolio. In an attempt to simplify his expenses , he withdraws $80,000 and pays off his car, motorcycle and other debt, banking the rest. He works part of the year and decides to start his social security benefit midyear.

Fairly confident he has his finances in hand, Charlie looks to understanding the future of his healthcare in medicare. While his employment deduction bought the Part A hospital and rehab benefit, the cost for the medical Part B benefit is billed monthly for the retiree and quarterly for those still working. The cost for Part B is dependent upon your income.

The majority of recipients who file a single tax return of $85,000 or less ($170,000 for those filing joint returns), who are retiring this year will pay $134 a month for their medical benefit under Medicare. Charlie, however because his deduction from his 401K increased his income to over $150,000 will pay double, a whopping $267.90 for his Part B premium for the next three years before an adjustment will be made.

The extra money paid for this premium will cost Charlie over $4500 in the next three years. When preparing for retirement it is imperative to seek out the help of a specialist in orchestrating the pitfalls of retirement readiness. Retirement can often last in excess of 30 years and needs structuring so you do not run out of money.

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