Group 1 - Medicare represents a significant expense for retirees, primarily due to various costs associated with its coverage, including premiums, deductibles, and coinsurance [1] - Keeping Medicare costs down is essential for retirees transitioning to a fixed income, and avoiding extra charges on premiums is crucial [2] Group 2 - Timely enrollment in Medicare is critical; the initial enrollment window lasts seven months, and late enrollment can lead to lifelong surcharges [3] - A 10% surcharge on standard monthly Medicare Part B premiums is imposed for each 12-month period of delayed coverage, along with surcharges for Part D premiums if there is a gap in prescription coverage [4][5] Group 3 - Housing retirement savings in a Roth IRA can help avoid income-related monthly adjustment amounts (IRMAAs) for higher earners, as Roth IRA withdrawals are not counted as taxable income [6][8] - In 2026, IRMAAs will apply to single tax-filers with incomes over $109,000 and joint filers over $218,000, making it important to manage retirement savings effectively [7]
2 Ways to Avoid Medicare Surcharges in Retirement
The Motley Fool·2026-01-19 20:36