Retirement Watch Weekly
Expect Medicare Advantage Changes in 2025
Medicare Advantage plan insurers are under fire, as I foretold in my Feb. 1 Bob’s Journal. Barron’s recently expanded upon the situation in a cover story. The problems became apparent when Humana, a major provider of Medicare Advantage plans, reported higher costs and lower profits, reporting it expected those trends to continue. While Advantage plans […]
Bob’s Journal for 3/28
Social Security to Reduce ‘Clawback Cruelty’ for Benefit Overpayments The Social Security Administration (SSA) finally is moderating its aggressive practices against beneficiaries who were overpaid benefits. It’s not unusual for SSA to make errors when calculating someone’s benefits and discover the error later, sometimes years later. Then, the SSA demands repayment. The longstanding SSA practice […]
All the Ways You Can (Legally) Avoid Probate
Avoiding probate often is a major estate planning goal, but most people don’t learn all the strategies available. In probate, a deceased person’s estate is administered and distributed according to state and local law. The process ensures debts are paid and legal title to assets passes as the decedent wanted, or according to state law […]
How Investors Undermine Their Forecasts
Investors have been on a roller coaster ride of their own creation for the last couple of years. Each time inflation cools and the economy slows, investors become ebullient. They conclude the Fed is about to cut interest rates rapidly and significantly. That anticipation of easy monetary policy leads to reduced interest rates and lifts […]
What You Should Know About the New Medicare Prescription Drug Spending Limit
In 2024, Medicare beneficiaries start to benefit from prescription drug coverage changes in recent laws, but the benefits won’t be as generous for some as they expected. The phaseout has begun of unlimited out-of-pocket prescription drug spending for Part D policyholders. The changes apply to those who have Medicare Part D prescription drug insurance. Those […]
Why Line 11 Is the Most Important Number on Your Tax Return
When you’re in or nearing retirement, the most important number on your income tax return isn’t gross income or taxable income. It isn’t even the total tax bill. You want to closely monitor line 11 on the first page of the 2023 Form 1040, your adjusted gross income (AGI). Congress knows retirees have the bulk […]
Surviving Spouses Now Have More Rights in 401(k) Plans
Surviving spouses who are beneficiaries of 401(k) accounts have choices similar to those when they inherit IRAs, but there are important differences. The first step is to contact the plan administrator and determine the options allowed. While the tax code permits several options, a plan doesn’t have to offer all of them. Historically, 401(k) plans […]
What the SECURE Act and Recent IRS Regulations Mean for Spouses Who Inherit IRAs
Some of the most important decisions a surviving spouse will make are how to handle inherited IRAs and 401(k)s. Yet, advice for surviving spouses has been overshadowed by changes made for non-spouse beneficiaries since the enactment of the Setting Every Community Up for Retirement Enhancement (SECURE) Act in late 2019. The SECURE Act famously eliminated […]
