Planning for Retirement

What do you need to know for medical coverage adjustments?   Are you retiring early (prior to age 65), or are you retiring on time or late (age 65 or older)?  

There are several things you need to consider:

• Do you have an H.S.A (Health Savings Account) or are you thinking about opening an H.S.A? If yes, there are deadlines when you must stop contributing funds to the H.S.A to avoid any IRS penalties. What can and can’t I use my H.S.A funds on (note: the rules are  different based on under age 65 versus 65 or older).

• Can I afford the premium costs for health insurance?

  For an individual or individual with spouse medical insurance coverage?

OR

Is COBRA even an option with my employer medical insurance plan (COBRA is used to continue on your employer plan after you leave)….. Can I afford the COBRA premium costs (medical insurance under age 65)?   If COBRA is available and I can afford it, when does COBRA coverage end?

• Age 65 or older, can Medicare be delayed (while still employed/working)?

Sometimes you can, other times you cannot. There are a number of factors on what you can and cannot do, based on CMS (Centers for Medicare and Medicaid Services) guidelines and requirements.

Medicare Myths:

• Most people think Medicare is free.  Medicare is not free, there are costs to it.

• I can enroll into Medicare whenever I want (at 65 or wait).   Incorrect, there are several different situations and scenarios if you can delay Medicare enrollment or not.  

  NOTE: If you don’t pay attention to rules and timelines, you will have Lifetime penalties if you do not enroll timely when you should have enrolled into Medicare.

• Long Term Care – Most people think Long Term Care is part of or included in Medicare, it actually is not covered at all by Medicare… Leaving you and/or your loved ones to take care of.    There are options on what you can do to take care of filling this important gap.

• Other factors to consider include, but are not limited to (prior to age 65 and age 65+):

• Inflation

• Expected medical procedures

• Medication expenses

Please contact Angela Romenesko at our office to schedule an appointment to discuss further at (920) 347-9334.