Taking Money Out of Your 401k Can Be DANGEROUS For Your Medicare

[@TheMedicareFamily]

Let me know what you think about the video in the comments below! Get my FREE Cheat Sheet, Workshop, and other tools here: linktr.ee/medicare.mama

[@Dusanteodorovic]

Please recommend medical insurance that covers 65+ expats occasional US visits. It will greatly help your followers

[@Qwazier3]

Aren't you allowed to sign up for medicare and freeze it till they want to open it? Wouldn't that help stave off the penalty?

[@benmowry]

I’m a Medicare Broker and I gave a presentation at a retirement facility yesterday and went over this exact same topic! People have no idea about it and their financial advisors have no idea either.

[@TheMedicareFamily]

Nor do accountants!

[@bobjs3090]

Super important video! Thank you for postings!!

[@mrnetwurm]

This channel is helping me so much in preparing for my retirement. I'm 60 and trying to put all the pieces in place now.

[@TheMedicareFamily]

Wonderful!

[@greeneyes7612]

Same here!!! I was just thinking about pulling some money! Now I know not to touch it till after I'm on Medicare

[@isitrachelorj3953]

Brilliant couple videos on this subject! Troubling to read about the many people who were unaware, or irresponsible, and made $$$$$ mistakes that will cost them.

[@montecraig7032]

This worried me at first until I found out I’m no where near rich.

[@johngrubb5486]

Thank you for the information. I will be 63 this year. Still working, and receiving a military retirement...Lt Col, just under the $206,000. This is a good news story!! Yes, i do understand that i am forced to pay Medicare once i turn 65 due to my military retirement.

[@wilhelminadavis5243]

Why do you have to pay for Medicare? I am a veteran. I am enrolled in the as my medical insurance. I make co-payments. I enrolled in Medicare part A, which is mandatory, and I don't pay a monthly premium. I have received all my health care, except dental, from the VA since 2009. Every year the sends me a letter saying to file this with your income tax records. The letter that the VA is my medical insurance, so I will not pay a penalty for not having the usual medical insurance company. Thank you for your service, from an US Army medic from the 1980s.

[@johngrubb5486]

@@wilhelminadavis5243 because the USG needed the funds from all the retired military to help pay for Medicare. So, at 65 we are forced to purchase Medicare. However, our Tricare Prime changes to the Free Tricare for life. Also, as part of the deal, we no longer pay for any deductibles or office visit co-pays.

[@Churchillhump2268]

Withdrawing from your 401k not only reduces your retirement savings but also could potentially increase your taxable income, affecting your Medicare premiums.

[@Kseniaramesh]

I completely agree. Besides, withdrawing early can trigger penalties and fees, and with the current global economic instability, it's even more crucial to keep your retirement funds intact

[@Linda.xing-tj2fh]

If you don't already know, careful management of your 401k is essential, especially in turbulent times. I personally saw my retirement portfolio grow by staying the course and not making hasty withdrawals, even when the market was volatile.

[@louisahernandez]

The problem is that people don't have the knowledge needed to succeed in a challenging market. Only highly qualified professionals who had to experience the 2008 financial crisis could hope to earn a high salary in these challenging conditions.

[@Bigwilli123]

Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.

[@Andres_853]

It's great to hear you're also working with Eric Paul Elmer, you know its hard to find someone who knows what they are doing nowadays

[@Pokeinit1]

Thank you! This just helped me to not make a mistake. Thank you!

[@plastruk]

At 59 I’ve got a plan on my head but I love the help on these things.

[@goodcitizen]

I just got hit with IRMAA. I took a 63K disbursement in 2022 from my 401K it put my AGI at $104,128 so now when I transition to Medicare starting June 1st (06/1959) I have to pay an additional $69.90 per month until who knows when…even though my 2023 AGI was $27,748 I have no “Life changing event” (form SSA-44) to use as an excuse 😢 since I begin Medicare in June I am hoping the added amount I have to pay will only go until my next reported AGI for tax year 2024 is recorded? My expected AGI for tax year 2024 will be less than 40k (single widowed) Medicare Momma what do you think? Maybe I will only have to pay extra for less than a year? I tell ya it’s always something….Keep those awesome videos and shorts coming!!! ❤

[@ggjr61]

That’s what it sounds like. Basically it’s re evaluated every tax year two years back.

[@TheMedicareFamily]

Thanks for your kind comments!

[@susanlovesjava4961]

​@@TheMedicareFamilyshe was asking for your opinion not complements on her comments

[@susansculley2562]

Only that one year bc its recalculated yearly based on taxes from two years ago. Glad you're aware of completing SSA44! Great job!

[@billcorral894]

Great video sylvia

[@TheMedicareFamily]

Thank you 😁

[@pensacola321]

This year I got IRMAA and NIIT. Ain't life grand.

[@martyc2637]

The real crime is the $25,000 income limit for not taxing ss has not been changed since 1983!

[@TheMedicareFamily]

It will never change. That was the plan

[@Dusanteodorovic]

Please recommend medical insurance that covers 65+ expats occasional US visits

[@suzettefrio3145]

Thank you. I learn from every viideo you make.

[@richardstokes7508]

Wow!!! Thank you!

[@TheMedicareFamily]

You are so welcome!

[@augustwest9339]

Congress should abolish IRMAA

[@Satjr35031]

Why it doesn’t affect a lot of retirees on SS

[@TheMedicareFamily]

Nope. Yet want to expand it!

[@isitrachelorj3953]

No they shouldn't. Stop watching FAUX NEWS.

[@madmax9051]

Even though I have just a little bit of over four years to retire…. I truly enjoy the way you teach so many of us, but I’m sure many of these laws will change by the time I’m ready I appreciate your tone, your clear description of-the facts… and of course how attractive looking you are I could see how many women may be it terminated and jealous of you,

[@TheMedicareFamily]

You are so welcome!

[@happilyretiredfrommerrill9357]

FOR THE SAKE OF IRMA, DO THEY VIEW LONG TERM CAP GAINS THE SAME AS THEY DO IRA WITHDRAWALS----I KNOW LTCGs ARE TAXED LOWER THAN INCOME BUT I'M WONDERING HOW IRMA VIEWS THEM.

[@theresa1017]

If you sell your home adter retirement is that consider income?

[@TheMedicareFamily]

Only the gains above your your tax exemption

[@DevilTravels]

According to the chart, anything less than about $100k taken from my 401k, my Medicare premium won't change and my social security won't change. But according to the IRS, I would still pay 22% in taxes. So it can be done for buying a modest retirement house at full retirement age.

[@roncraft2042]

Don’t you just love our government 🤬

[@isitrachelorj3953]

Yes I do, toadstool. Our government/we the taxpayers attempt to give seniors healthcare coverage that would be beyond their fiscal means otherwise. Don't blame anybody/everybody else for your lack of planning, ignorance or neglect when facing the challenges of finance, taxes, and healthcare affordability. The fact that you have to pay taxes is not hindrance, it's a blessing, that you get something back from (the argument on how those $$$$$ are spend is a completely different issue).

[@tomb4568]

Yup happened to me just like you said! I got bumped into 2nd tier because of my AGI and a 401 withdraw :(

[@TheMedicareFamily]

Happens all the time

[@Satjr35031]

Then you have a lot of provisional income

[@joedirt5521]

Life time penalty should be illegal

[@JS-mx3he]

Very helpful all these laws an penalties make me sick ...work your ass off then government trys to rip off everything. Im collecting SS. FRA this month still working i guess im not touching my 401 at all. When i do go on part B guess ill have to pay more since my income is higher now?

[@TheMedicareFamily]

Yes

[@leenickshramko1100]

How would Medicare advantage play in this scenario?

[@sheryllegg845]

If you sell a home is the amount irrma relies on gross or net sales price?

[@TheMedicareFamily]

Only on the gains that I exceed your exemptions

[@TheMedicareFamily]

Gross

[@markkrull556]

If I understand correctly, if I start withdrawing for my 401(k), after the age of 67, do I still get subjected to IRMAA??

[@teekay_1]

At some point you're going to have to pull big chunks out of your 401K because of RMD and you'll get hit with the same IRMAA tax. And the top bracket is close to the $600 dollar range. There's no way around this. I would recommend against Medicare Advantage if you can possibly help it.

[@leenickshramko1100]

My LTD with Geneorth is going up exponentially to keep the same benefit. I k ow it’s not your thing, but can you direct to some professional in that space?

[@TheMedicareFamily]

It’s just a shame. People drop it because they can no longer afford it! It’s very common and there is no solution

[@badbeatbilly8997]

Well this law needs to be changed then

[@garymiller4141]

Please tell your viewers how IRMAA works when you own State and Federal tax free municipal bonds. In my case and many others were under the assumption that the IRS dose not tax you for this income but Medicare charged you and adds this into your total amount that puts you into a larger cost for your part B and D .Just another example of how they claw back money by using IRMAA.

[@donreinholz8121]

There is so much info on YT but it only helps if you research it or use a financial advisor.

[@martinguldnerAutisticSwanGuru]

A reason why you're retirement account should be 100% Roth IRA Roth 401k!!!

[@Satjr35031]

Not too many couples this year will exceed $206,000

[@firehorsewoman414]

Yeah, starting to regret going for the tax break on 401(k) and not going full ROTH much earlier in life.

[@isitrachelorj3953]

You betcha. 7 figures $$$$$$$ ROTH.

[@jessefletcher9116]

I'd think that distributions from a Roth 401k or Roth IRA would sidestep that IRMAA penalty.

[@TheMedicareFamily]

Noooooooo

[@heidikamrath1951]

I would have thought the same since she is talking about adjusted gross income for taxes-and withdrawals from these accounts aren’t taxed?? @TheMedicareFamily, would you do another video to explain why you said Noooooooo?

[@gonebyrv9748]

@@heidikamrath1951 the Roths aren't taxed, but they are added to the AGI to calculate the IRMAA.

[@heidikamrath1951]

@@gonebyrv9748thanks for explaining. It’s a bummer, but does sound fair.

[@vickeybird6665]

Perhaps take a larger piece out from IRA before 62 to live on 2 years. Stay low in 63 and 64. Then my income will be 0 for last 2 years when I apply medicare at 65. T

[@vickeybird6665]

How about the premium after 65?. Isn't it supposed to increase every year, and also recalculated from previous 2 year's income?

[@greeneyes7612]

How much is Medicare if you make 43,000 a year as a couple?

[@TheMedicareFamily]

This year $175 each

[@litrealred6840]

Hi! If you 76 draw out of 401k , put you in higher tax bracket, will you pay for Medicare or any of it!

[@TheMedicareFamily]

Possibly

[@litrealred6840]

@@TheMedicareFamily Hi! That what I was thinking when you were talking takes out of 401k, when people said oh I got good 401k! You got it but you can’t touch it! Thanks! 🤗🥰

[@Camera1931-p5v]

Watch Ed Weir! I just went through this and as long as you have a life changing event, like work stoppage, you can stop Irmaa!

[@TheMedicareFamily]

Stop being rude and referring people to another person.

[@markflood9755]

Stop being rude. I'm out

[@tmanch1]

When I start my RMD, I will have to pay IRMAA. RMD will put me over the top.

[@TheMedicareFamily]

We call that a tax torpedo

[@MrBiggtonyc]

😢😢😢😢 too late, wish I would have known

[@kurtbjorn3841]

Excellent info! I though social security was weird and complicated... Medicare scares the out of me. I'm 62, and have a hefty inheritance headed my way. Is that going to plunge me into IRMAA hades? 😬

[@TheMedicareFamily]

Nope. Only earned income

[@4metoknow]

whats with all the melodrama?

[@TheMedicareFamily]

You are welcome

[@donreinholz8121]

That's why you plan for retirement. The middle class always pay more tax than the Uber rich. Also the Secure Act affects your kids taxes should you both pass away. Decisions do have consequences!

[@leenickshramko1100]

I’d never heard of IRMMA till I got the letter from medicare, after I’d retired and took a voluntary severance that bumped me up over the bracket. I filed for an exemption, as it was a one time surge in my income and was granted, so that was nice. It’s only for one year, anyway. But you do have to then keep an eye on your withdrawals, as stated. And when your RMDs start ring required to be withdrawn at 72 or so years old, you may very well be bumped into the next bracket.

[@bg5215]

Possibly could have taken out about $200,000 of the 401k and a mortgage for the rest and then kept taking out $200,000 per year to keep under the limit.

[@TheMedicareFamily]

That exceeds the limit

[@Ed-sh8jt]

What is the yearly limit?

[@BruceDeWald-ee5jm]

File for an IRMMA waiver premised upon your current tax year.

[@TheMedicareFamily]

Thanks for that!

[@montecraig7032]

I am 62 and have never planned on signing up for Part D.

[@dfarrell2269]

Got my wife and I!! Don’t down size and sell your house because they count your house sale money $$ too!!

[@dk99745]

ACA is never a great plan…deductibles are atrocious and the service is less than Canada’s

[@TheMedicareFamily]

I agree with you

[@bojibear7957]

Shell game

[@raymonddee1059]

america dream no finance knowledge

[@ericrice4930]

I thought they want you to retire at 70?

[@gracewalsh4908]

😊

[@leshsl4482]

👍

[@greeneyes7612]

Why wouldn't I just stay on my current insurance? It's cheap!!

[@TheMedicareFamily]

At 65 rules change

[@greeneyes7612]

We don't make much so maybe it will not be too expensive.

[@jasonjaskey]

Are all these arbitrary rules about ages and penalties documented somewhere where it can be explained to, say, a 5 year old? I need this stuff white boarded out so I can understand it, at least the generalities. This is stuff that everyone or mostly everyone will have to deal with in life, and should be taught in schools...not some of the useless woke junk that they waste their time on now with...

[@TheMedicareFamily]

www.SSA.gov

[@bettybaumann5824]

I am starting to think 401k isn't all that great. Saving on your own would be better.

[@52CA]

How can people be so smart to have amassed all that money but turn stupid when it comes to managing it. If someone were to whine to me about IRMA I’d instantly realize they are pretty wealthy so just pay up and shut up.