Boomers who have been the most diligent savers over their careers may be shocked to learn they may be penalized for their efforts.
A new white paper from HealthView Services, a provider of retirement health care data to RIAs, breaks down how Medicare premiums and surcharges are assessed to retirees’ Social Security payments.
Medicare uses Modified Adjusted Gross Income (MAGI) to calculate beneficiaries’ premiums.
MAGI is the sum of almost every source of retiree income, including money earned through work in retirement, Social Security, pensions, distributions from self-directed plans, dividends, earned interest and capital gains.
Once MAGI surpasses $85,000 for an individual, or $170,000 for a couple, Medicare surcharges and premium increases are assessed, and automatically withdrawn from monthly Social Security benefits.