Retirement & Social Security Archives - Page 2 of 21

Inherited Roth IRAs must clear within 10 years of the original owner’s death — but unlike inherited traditional IRAs, the heir owes zero federal income tax on any of the distributions

Heirs who inherit a Roth IRA face the same 10-year withdrawal deadline that applies to inherited traditional accounts, but they keep every dollar they pull out. That split between a fixed timeline and zero federal income tax creates a planning window unlike anything else in the retirement system. For families sitting on large inherited Roth…

CMS just opened 14 days for comment on a rule forcing Medicare drug plans to approve prior authorization within 72 hours — 24 hours urgent — before comments close June 15

Warren Cohen3 days ago3 days ago014 mins

A cancer patient waiting on chemotherapy approval. A diabetic whose insulin switch sits in a queue. A psychiatrist watching a patient destabilize while paperwork bounces between a clinic and an insurer’s review desk. These are not hypotheticals. According to the American Medical Association’s 2024 Prior Authorization Physician Survey, 94% of physicians say prior authorization delays…

USA Social security cards laid on dollar bills

The Social Security earnings test claws back $1 for every $2 of wages above $23,400 for early claimers — and the docked dollars return as larger checks once the worker reaches 67

Warren Cohen3 days ago3 days ago017 mins

Linda, a 63-year-old administrative coordinator in Ohio earning $60,000 a year, opened her bank statement last January and found three months of Social Security checks missing. She had claimed benefits at 62, expecting $1,600 a month to supplement her paycheck. Instead, the Social Security Administration withheld $18,300 over the course of the year. She was…

Close up portrait of senior doctor with elderly patient

The 2026 Medicare Part D out-of-pocket cap is $2,100 — once a beneficiary hits the limit, they pay $0 for every covered drug for the rest of the year

David Keller3 days ago3 days ago013 mins

A Medicare beneficiary filling a specialty cancer prescription that costs $15,000 a year will, at some point in 2026, walk up to the pharmacy counter and owe nothing. Not a reduced copay. Not a percentage of the list price. Zero. That moment arrives when their qualifying out-of-pocket spending on covered Part D drugs crosses $2,100…

Couple reacting with excitement to a document

Roth conversions still lock in today’s 22% bracket through 2029 under the OBBBA — but the cuts snap back to pre-2018 rates in 2030, so converting now could save tens of thousands in lifetime tax

Warren Cohen3 days ago4 days ago018 mins

A married couple in suburban Ohio, both 62, with $600,000 sitting in traditional IRAs and a comfortable but not extravagant retirement income, faces a question that will quietly shape their finances for the next three decades: should they pay tax on those IRA dollars now, at a rate they know, or wait and hope that…

The 2026 IRMAA cliff adds $74.40 a month to Medicare Part B premiums the moment single filers cross $109,000 of income — and the lookback uses your 2024 tax return

Alexander3 days ago4 days ago012 mins

A retired teacher in suburban Ohio who reported $108,900 of modified adjusted gross income on her 2024 tax return will pay $202.90 a month for Medicare Part B in 2026. Her former colleague down the street, who reported $109,100 after a modest Roth IRA conversion, will pay $284.10. That $200 gap in annual income triggers…

Financial advisor businessman using his laptop and doing some paperwork while sitting at desk and working

Rolling an old 401(k) into a traditional IRA loses the federal ERISA shield that protected the workplace plan — bankruptcy courts still honor a $1.7 million IRA carve-out, but civil-suit creditors can reach the rest

Warren Cohen3 days ago4 days ago013 mins

A physician in Los Angeles rolls a $2.4 million 401(k) into a traditional IRA after leaving a hospital system. Two years later, a malpractice plaintiff wins a judgment and moves to garnish the account. Under California law, a court can order part of that IRA turned over if it decides the balance exceeds what the…

Social Security Card in front of Benjamin Franklin on dollar note

The 2027 maximum Social Security benefit will climb about 4% to roughly $5,455 a month at age 70 — but only workers who hit the max taxable wage base for 35 years and delayed until 70 will ever get it

David Keller3 days ago4 days ago014 mins

Out of the roughly 67 million Americans collecting Social Security, only a sliver of a sliver will ever see a monthly deposit anywhere close to $5,455. Yet that is the projected maximum monthly benefit for a worker turning 70 in 2027, up about 4 percent from the current ceiling of $5,181 at age 70 in…

CMS just opened the public comment window on a rule forcing Medicare drug plans to approve prior authorization within 72 hours — and 24 hours for urgent requests — comments close June 15

Warren Cohen4 days ago4 days ago012 mins

When a Medicare patient’s doctor prescribes a new medication that requires prior authorization, the insurance plan has to decide whether it will pay before the patient can fill the prescription. That review can drag on for days. Treatment stalls. Some patients pay out of pocket. Others switch to a less effective drug or stop pursuing…

The Labor Department’s proposed safe harbor to add crypto and private equity to default 401(k) lineups closes public comments tomorrow — then moves to a final vote and OMB review

David Keller4 days ago4 days ago013 mins

Most workers in a 401(k) plan never choose where their money goes. They get auto-enrolled, and a plan fiduciary picks the default fund on their behalf. According to Vanguard’s 2024 survey of its recordkeeping clients, roughly 60% of every dollar flowing into 401(k) plans lands in one of those default options. Now the Department of…

Category: Retirement & Social Security

Inherited Roth IRAs must clear within 10 years of the original owner’s death — but unlike inherited traditional IRAs, the heir owes zero federal income tax on any of the distributions

CMS just opened 14 days for comment on a rule forcing Medicare drug plans to approve prior authorization within 72 hours — 24 hours urgent — before comments close June 15

The 2026 Medicare Part D out-of-pocket cap is $2,100 — once a beneficiary hits the limit, they pay $0 for every covered drug for the rest of the year

Roth conversions still lock in today’s 22% bracket through 2029 under the OBBBA — but the cuts snap back to pre-2018 rates in 2030, so converting now could save tens of thousands in lifetime tax

The 2026 IRMAA cliff adds $74.40 a month to Medicare Part B premiums the moment single filers cross $109,000 of income — and the lookback uses your 2024 tax return

Rolling an old 401(k) into a traditional IRA loses the federal ERISA shield that protected the workplace plan — bankruptcy courts still honor a $1.7 million IRA carve-out, but civil-suit creditors can reach the rest

CMS just opened the public comment window on a rule forcing Medicare drug plans to approve prior authorization within 72 hours — and 24 hours for urgent requests — comments close June 15

The Labor Department’s proposed safe harbor to add crypto and private equity to default 401(k) lineups closes public comments tomorrow — then moves to a final vote and OMB review

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