Before you turn 65, you’ll want to become familiar with Medicare’s rules and features.
And if you’re a high earner, you’ll want to be especially aware of the Medicare premium surcharge — because, over time, it can add up to some significant dollars.
The premium surcharge is generally based on your modified adjusted gross income from two years earlier.
So, are there ways you can lower this income or otherwise reduce the surcharge?
If you have access to a Health Savings Account, your contributions can lower your taxable income.
Also, if you have a Roth IRA, your withdrawals are tax-free if you meet certain conditions.
These tax-free withdrawals may enable you to avoid taking taxable withdrawals from other accounts.
In addition, you’ll want to avoid withdrawing too much from all your retirement accounts each year.
While these moves could potentially help you control the Medicare surcharge, they still have to make sense for your overall financial strategy.
Don’t lose sight of your important goals.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor John Dickerson. Member SIPC.
