Q & A
Are CSRS retirees required to join Medicare by age 65?
Answer: No, you don’t have to sign up for Medicare. However, it wouldn’t make any sense for you not to sign up for Part A because you’ve already paid for it through payroll deductions, and the benefits are free. Part B…
Will I need a million dollars to retire?
Answer: How much money you need to save for retirement depends entirely on the standard of living you plan to have. And, trust me, a loosey-goosey estimate that figures on “a used-car payment and groceries” won’t do. You will need a…
How do I know if I have worked long enough to qualify for Social Security disability benefits?
Answer: You must have worked long enough – and recently enough – under Social Security to qualify for disability benefits. Social Security work credits are based on your total yearly wages or self-employment income. You can earn up to four credits…
Will the retirement of the baby boomers overwhelm Social Security?
Answer: No. The baby boomers’ retirement did not catch Social Security by surprise. Benefit reductions that were enacted 30 years ago, including gradually raising the age of eligibility for full benefits from 65 to 67, are still phasing in and have…
Who are Social Security’s trustees and why do they issue an annual report?
Answer: Social Security has six trustees: the Secretaries of the Treasury, of Labor, of Health and Human Services; the Social Security Commissioner; and two public trustees, who by law must be from different political parties, are appointed by the President, and…
If I’m retired and my former employer offers me insurance, can I shop on the exchange to get a better deal?
Answer: Even if your former employer offers coverage, you can opt to buy a plan on the exchange. However, you may not be eligible for a subsidy. Source: www.npr.org, October 12, 2013
Does the health care law offer any new benefits for Medicare beneficiaries?
Answer: Beneficiaries receive more preventive care services – including a yearly “wellness” visit, mammograms, colorectal screening, and more savings on prescription drug coverage. By 2020, the law will close the Medicare gap in prescription drug coverage, known as the “doughnut hole.” Seniors will still…
Does the health law require higher-income Medicare beneficiaries to pay more for their Medicare prescription drug coverage?
Answer: It does. Currently, Medicare beneficiaries who earn more than $85,000 ($170,000 for a couple) pay more for their Medicare Part B premiums, which cover physician and outpatient services. The health law brought that same sliding-scale approach to beneficiaries’ prescription drug coverage in Medicare…
Roth IRAs – Does the pro rata rule apply in a situation where a “backdoor” conversion was effected prior to any deposit from a qualified plan, but both events did occur in the same calendar year? Does the pro rata rule still apply given the funds were never co-mingled in an account at any time?
Answer: Yes. The pro rata rule applies even if a qualified plan is rolled over after the conversion takes place because Dec. 31 is the date the IRA’s are valued for purposes of making the calculation. The pro rata rule applies…
I retired at 58, work part time, and have a net worth of $1.3 million, including investments. When is a good time for me to collect Social Security?
First of all, congratulations on amassing a decent retirement nest egg and for continuing to work part-time as your retirement begins. Doing those two things puts you ahead of many of your peers when it comes to retirement preparation – and it’s smart…