https://retirementplanningscottsdale.com/ Anil Vazirani asks: “Are you maximizing your social security payment with the New 2018 Social Security Changes?”
How does social security fit in retirement? Anil suggests you find out about the 2018 Social Security and Medicare changes.
Most Medicare beneficiaries will pay more for their health-care premiums in 2018 than last year.
Retirees will finally get a 2% increase in their Social Security retirement benefits in 2018.
Medicare Part B premiums will be higher. Some high-income retirees will pay even more for both Medicare Part B and Medicare Part D prescription drug plan premiums in 2018.
Payroll taxes are increasing.
In 2018, retirees who are younger than 66 can earn up to $17,040 before losing any benefits, $120 more than last year. After that, they would forfeit $1 in benefits for every $2 earned over that limit.
Those who turn 66 in 2018 can earn up to $45,360 in the months preceding their birthday without jeopardizing any benefits, up $480 from last year.
The current full retirement age of 66 is increasing for workers born after 1954 and that means the reduction for claiming benefits early is increasing. For individuals born in 1956 who turn 62 this year, their full retirement age is 66 and 4 months.
The cost of the credits that a worker needs to qualify for Social Security benefits and Medicare coverage is going up. To be eligible for Social Security and Medicare, you must earn at least 40 Social Security credits with a maximum of four credits per year.
Social Security benefits are still taxed the same way based on combined income, which includes a taxpayer’s adjusted gross income, plus tax-exempt interest and half of their Social Security benefits.
Individuals’ whose combined income is between $25,000 and $34,000 pay income taxes on up to half of their benefits. Once their combined income tops $34,000, they pay income taxes on to 85% of their benefits. Married couples with combined incomes between $32,000 and $44,000 pay taxes on up to 50% of their Social Security benefits. Once their income tops $44,000, they pay taxes on up to 85% of their benefits.
Detail per an article in Investment News:
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