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Medicare · Money In Motion with Klaas Financial

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This is money in Motion with Class Financial, a fun and informative show designed
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to help you get answers to all your retirement questions in one place, and
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our phone lines are open for you right now at six o eight three two
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one thirteen ten. That's three two one thirteen ten gets you on the air
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with our retirement planning professionals from Class Financial, C J. Class and Malia
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Quavis. You can learn more about Class Financial on their website Class financial dot
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com. That's k l a As Financial dot com. Great website. Also
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Again, it comes out once a week, and today's a big day.
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Also at class financial dot com. Notice the updated summer pictures. So
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it's kind of thing I geek out about to get check that out online Class
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financial dot com. They're tell the number six so eight four four two five
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six thirty seven. That's four four two fifty six thirty seven. No charge
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for the financial gets no you appointment at Class Financial. It is complementary to
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you. As mentioned joined this morning by c J Claus and Malia Quaevis,
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CJ, how you doing this week? I'm doing great. I had to
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check out our website to see the new summer photos. I didn't realize they
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were up there. It is, they are up, they are fresh,
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and I was trying to figure out what card game they're playing in the one
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picture and that that's that's, that's for later today. I think that,
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yeah, how you doing, Malia? Very good and join the summer weather
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and I think everybody's sporting some nice sunburns sound that I've seen, So stay
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out of the sun when you can, because you need to protect your skin.
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Everybody wear a hat and where sounds are? You are absolutely right on
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that, Malia for sure. And as mentioned about the website, class financial
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dot com, you can not only assign up for the weekly Market Pulse newsletter,
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listen back to previous shows podcasts, you can also get to no class
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Financial and their separate divisions and how they can help you or if you're an
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employer, can all that up at class financial dot com. And CJ and
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Malia, they are here for you this morning. If you've got a retirement
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related question, love to get you on the air. Six O eight three
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two one thirteen ten. That's six O eight three two one thirteen ten.
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We can be talking medicare this week on the program. But before we get
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rolling on this week's conversation, one of the really cool things also that goes
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on on the show. It's the Class Quiz Question the Week and this week
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chance to win a twenty five dollars gift card to Olive Garden from our friends
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at Class Financial. Little tip if you listen closely to the program, oftentimes
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both the question and answer to the Class Quiz Question the Week come up during
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the show, so pay close attention. We'll tell you a little bit later
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exactly how you can win that twenty five dollars gift card to the Olive Garden.
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And before we get rolling on this week's topic and this week's conversation,
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let's actually take a look back at last week's Class Quiz Question the Week and
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review the question and answer there as well. Yeah, so we appreciate everyone
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who listens every week and tries to guess the answer to our question last week
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Jeff of Madison, Congratulations to him. He correctly answered the following question,
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what is a maxim amount you can contribute to either a traditional and roth for
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owen k between the both or singular singularly in twenty twenty three, if you're
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over fifty years old and you have enough earned income, so is it thirty
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thousand or fifty thousand? He correctly answered it's thirty thousand if you're over fifty,
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so that's twenty two thousand and five hundred. Everybody can contribute that if
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they have enough earned income, plus a seventy five hundred dollars ketchup which brings
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us to that thirty thousand dollars number. So congratulations to Jeff. Listening carefully
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for today's question, and don't forget if you missed last week's program, you
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can also listen back at class financial dot com. That's klaas financial dot com.
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And for folks who are about to turn sixty five, I know some
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of us have questions. Of them have questions, and of course got some
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very important information today when it regards to Medicare CJ. What are some of
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those things that folks need to be aware of and need to know. Yeah,
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So we're going to be discussing Medicare Medicaid today, and these are important
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programs for Americans to know about since the vast majority of US are actually paying
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through our payroll taxes money into Medicare. Now you may say where, I
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don't see it on my pay stub, and it's under the FICA so FICAS
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part Social Security known as OASDI, and then the other piece is Medicare.
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It's only gosh, I don't even remember the percentage two percent, two and
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a half percent something like that goes out of each of your kind of paychecks
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into that Medicare piece. But it's important therefore for you to know not only
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what Social Security is all about, which we've talked about, you know,
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a bunch of times on this program, but also how Medicare will work for
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you in the future. So our first disclaimer is, although we are some
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of us are insurance licensed, we don't work a lot directly in the space,
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and so as we talk about it with clients, and good news is
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we're licensed to discuss it, but the vast majority of the time we are
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just going to refer you out to a specialist in this area. So by
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all means we discu as with our clients. We'll get into as much detail
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as we can, but at some point you'll have to work with a specialist.
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So first, let's start with a simple question for everyone, which is
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at what age does a person today qualify for Medicare coverage? And of course
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the answer is age sixty five is the first time that an American can move
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onto a national healthcare plan known as Medicare. This is not to be confused
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with your Social Security full retirement age. We hear this all the time.
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We will say, hey, when do you first qualify for Medicare? And
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people go sixty six or sixty seven. I go, no, you're thinking
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of social Security, So Medicare you are first typically eligible at age sixty five.
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You should know that if you are already receiving Social Security benefits when you
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turn sixty five, So I think of those people who started at sixty two,
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sixty three, sixty four. If you're already receiving Social Security benefits,
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you will automatically be enrolled in the Medicare Parts A and B when you turn
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sixty five without an additional application. However, because you must pay a premium
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for PARP coverage. You do have the option of turning it down in case
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you get health insurance from somewhere else. You will receive a Medicare card about
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two months before you turn age sixty five. And by the way, you
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will also get a boatload of mailings. If anybody wants to call in and
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tell us how many mailings they've gotten, I'm sure it's hundreds, if not
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thousands of mailings as you're getting close to age sixty five. And then one
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thing we wanted to highlight is the difference between Medicare and Medicade. This often
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is an area of confusion for people. Medicare, which is what we're focusing
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on here today. Medicare is a federal health insurance program for people's sixty five
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and older and younger disabled people and dialysis patients. Again, that's Medicare,
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whereas Medicaide is an assistance program for low income patience medical expenses. This is
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what you'll often hear about when you hear people say, oh, so and
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so went into a nursing home and they ran out of money, and now
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they're on Medicaid or they're in a Medicaid bed. So this is where I've
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run out of my own private money, but I still need medical assistance.
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I am now often being covered by Medicaid. So they are two different things.
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Talking this morning with our retirement planning professional CJ Closs Emlee Aquavis, if
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you've got a question, love to get you on the air six O eight
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three two one thirteen ten. That's three two one thirteen ten. You can
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learn more about Class Financial on their website class financial dot com. That's klaas
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Financial dot com and their telephone number six O eight four four two five six
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three seven. No charge for that initial get to know your appointment dit Class
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Financial. It will be complementary to you. Again, they're telephone number six
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O eight four four two five six three seven. And CJ you mentioned all
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those mailers and all that information. Other thing I see a lot is commercials
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and here and read about different parts of Medicare. There's a lot there to
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know, also, isn't there there is? So Bully and I meet with
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a lot of people as they're retiring and then of course as they're getting close
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to age sixty five thinking about signing up for Medicare and social Security and all
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these different things. And so I will just admit to you all, it's
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about as clear as mud when you first when you first engage Medicare, But
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of course for people like us who deal in it literally every single day,
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it becomes a little bit clearer over time, but it's it's constantly changing.
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So we are going to try to define for you some of the different parts
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of Medicare. Malia will get this into this a little bit further in her
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section, but just know again, we would highly, highly highly suggest that
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you talk to your financial planner, who hopefully can connect you with a kind
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of a Medicare specialist as you start going down this path. But yes,
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there's different parts to Medicare. Again, we are focusing on Medicare today,
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not Medicaid. There's different parts to it. Medicare Part A is known as
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the Hospital insurance. This Part A covers inpatient hospital stays in a skilled nursing
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facility. It also covers hospice care and some other basic health care. This
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part is free now, truth be told. Anytime somebody tells you something is
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free, the question is who's really paying for it? And the answer is
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no, You've already prepaid for this undermost circumstances. So there's no additional cost
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for Medicare Party or I'm sorry, Part A, because you've been paying those
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ICA or Medicare payroll taxes over all those years, except for some people haven't
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actually done this long enough. So you have to have at least ten years
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or forty quarters of Medicare payroll taxes in order to qualify for Medicare. If
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you don't have that, then some people who are not eligible for that quote
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unquote free Part A, they will pay a monthly premium of up to five
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hundred and six dollars per month in twenty twenty three, So again typically free
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for those who have had enough years of paying into the Medicare system, and
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if not, it can be pretty hefty. And if you don't buy Part
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A when you first become eligible at sixty five, you might even pay a
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penalty on an ongo basis. So what I would say is, as you
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are approaching age sixty five, even if you're still working, and even if
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you're not drawing Social Security and you have like a workplace health insurance plan,
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I would still slow down and make sure that you get signed up for part
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AY and anything else that you might need. As it relates to Medicare now
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Medicare Part B is the other piece. This is known as the medical insurance
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and it covers certain doctor services, outpatient care, medical supplies, and preventative
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services. The standard Medicare Part B premium amount is one hundred and sixty four
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dollars and ninety cents per month as of the year twenty twenty three. And
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this is per person. However, some people are saying, but, but,
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but, and that's right. The butt but butt here is it depends
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upon your income. If your income gets too high, and this is known
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as what's called your modified adjusted gross income. That's just your adjusted gross income
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with some ad backs if you have them. But long story short, you're
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modified adjust gross income. If it gets too high, then you can actually
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pay these things called erma's income related monthly adjustment amounts. I like to just
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call them penalties, but some people don't like that terminology. So you pay
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more for the same thing if your income is too high, call it what
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you want to call it, but it can go as high as five hundred
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and sixty dollars per month for that same benefit Medicare Part B if your income
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is too high. This is one of the reasons why people like us spend
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a lot of time reviewing tax returns, income sources, things like that,
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so that we can be cautious of not spiking your income. We had a
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client not too long ago just say hey, I want to take out one
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hundred grand to pay off my mortgage and buy a vehicle, which we're all
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four we want you to use cash to do things, but it was going
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to spike their income to go two levels up into Medicare, which was going
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to penalize them something like seventy five dollars a month per person for a year,
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and they decided just to do it over two years instead of one to
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avoid that. So be cautious with Medicare Part B because it is income dependent
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in term that terms of that premium. Also, as it relates to that
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Medicare Part B premium, you can have that covered out of your Social Security
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benefits, so also known as reduced from your Social Security income if you are
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also simultaneously drawing. If you're not, then it has to come out of
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a checking account. Talking this morning with our retirement planning professionals from Class Financial,
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CJ Class and Malia Quavis, our phone lines are open for you right
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now at six O eight three two one thirteen ten. That's six O eight
12:26
three two one thirteen ten. Love to get you on the air with Malia
12:30
and CJ on this beautiful morning. Don't forget as well. If you ever
12:33
have questions, you can learn more about Class Financial on their website class financial
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dot com. That's Klaas Financial dot com. The telephon number for the office
12:41
six O eight four four two five six three seven. That first deployment at
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Class Financially eight is complementary to you again their telephone number six O eight four
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four two five six three seven. What about that Part D, c J.
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Yeah, so I'm almost done with my section, I promise. So
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yes, we talked about part A Part B. Now we're going to talk
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about Part D, which again constitutes a monthly charge. Often the average monthly
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premium of varies according to your needs and the plan that you are one and
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coverage, so this is one additional premium cost and you'll be subject to copayments,
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deductible's other out of pockets costs. There's things known as the donut hole.
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So there's a lot to know about prescriptions if you're on a lot of
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them. But Part D is known as a prescription coverage, much like Part
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B, which is a medical insurance piece Part D. If your income is
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too high, you can pay those Part D irmas again income related Medicare adjustment
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amounts, So you have to be cautious of your income getting too high because
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it not only penalizes you or charges you more on the Part B, but
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also on the Part D. Now Medicare Parts C. This is also known
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as Medicare advantage. This is I just want people. When you hear Medicare
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Parts C or a Medicare advantage, this is what in the industry we would
13:58
call going off of traditional Medicare. Now that's not something you shouldn't necessarily do
14:05
it, just there's you have to be cautious of it because typically when you
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go onto Medicare Parts C or Medicare Advantage, you're actually getting Parts A,
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Part B and Part D with one bundled insurance policy for all Medicare coverage.
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They also offer extra coverages for things like dental vision hearing prescriptions, and like
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traditional Medicare, you would be subject to copays, deductibles, and other out
14:30
of pockets costs. But here's the key. Often Medicare Parts c is like
14:35
is free or very low premium and you get more benefits. So people go,
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it's the best of all worlds, and I go, you know,
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nothing's free in this world. And so the question is what am I getting
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and what am I giving up? When you go on a Medicare advantage,
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your out of pocket costs can be higher if you end up having poor health.
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So all you need to know is both have pros and cons. What
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we call staying on traditional Medicare and getting a Medicare supplement, which Malia will
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be talking about here momentarily, or going off of traditional Medicare by going on
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to Medicare Part SEA known as advantage plans. They both have frozen cons.
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You just need to know what they are and decide what is best for you.
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Talking this morning with CJ Clossmlia Quavis, our retirement planning professionals from Class
15:20
Financial Love take your call this morning if you've got a question, we'll get
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you on the air six O eight three two one thirteen ten. That's six
15:26
O eight three two one thirteen ten to get on the show this Morning with
15:30
Malia and CJ. Also, don't forget you can learn more about Class Financial
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they've got a great website. It's class financial dot com. That's Klaas Financial
15:39
dot com. If you miss part day's program, or want to listen back
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to a previous show or share the show with your friends and family, head
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on over to class financial dot com. Got a link to the podcasts right
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there. While you're at the site, also sign up for the weekly Market
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Pulse newsletter. The telephone open for the office at Class Financial right here in
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Madison six O eight four four two five six three seven. That first get
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to know you appointment not going to cost you a thing, It will be
16:00
implementary to you. Again. The telephone number six O eight four four two
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five six three seven. Heard CJ mentioned, We'll i'll learn about some of
16:07
the things that Medicare does not cover. We'll get the details with Malia next
16:11
and take your phone call as Money in Motion with Class Financial continues right here
16:15
on thirteen ten Wiva. This is Money in Motion with Class Financial, a
16:22
fun and informative show designed to help you get answers to all your retirement questions
16:27
in one place. Twenty two thirteen ten wy BA My emotion with Class Financial
16:34
chatting this morning with our retirement planning professionals, c J, Class and Malia
16:37
Quavis. As mentioned, they come to us from Class Financial. You can
16:41
learn more on the website Class financial dot com. That's klaas financial dot com.
16:45
If you've got a question right now, whether it's about Medicare or anything
16:48
related to retirement, great opportunity to get you on the air six O eight
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three two one thirteen ten. That's six so eight three two one thirteen ten.
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To join the program, and of course I mentioned the website Class dot
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com. Their telephone number six O eight four four two five six three seven.
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No charge for the initial get to no appointment at clause financial aid his
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complimentary to you again their number six O eight four four two five six three
17:11
seven, And to get on the air this morning six O eight three two
17:14
one thirteen ten. That's three two one thirteen ten. Talking about Medicare and
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CJ in that first segment laid out the different parts of medicare, and you're
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probably scritch head going, Okay, that sounds pretty there's a lot there to
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take in and a lot covered, but there are some things that medicare doesn't
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cover. Correct, Malia, that is correct, and so I just want
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to go back just for a moment to make sure people heard what CJ said
17:40
correctly. First of all, CJ knows his alphabet really well. Covered a
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lot of letters this morning, and when you talked about Part A, we
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just I want to make sure it's clear because some people panic about this when
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he discussed about this part being free if you've actually paid in over the years
17:56
for the medica through Medicare payroll taxes. This also applies if your spouse did
18:03
and you didn't. And I hear some panic from some people. They're like,
18:07
I I stayed home all those years, I didn't work, and so
18:11
just know that you are going to be covered by that Medicare Part A if
18:15
your spouse did in fact work and collect those quarters. So it's a really
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important point I've heard people get nervous about. And so when we look at
18:23
the costs that Medicare does not cover, and CJ mentioned about the advantage plans
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out there that that might be helpful for some people, it is a bundled
18:33
situation when we're just talking about straight Medicare, though, we have a lot
18:38
of gaps. So you'll hear people say, well, it's not it doesn't
18:41
cover this, It doesn't cover this, and that's where there's these medical supplemental
18:48
insurance plans that come into play. Sometimes they're called meta gap, sometimes they're
18:53
referred to as medsups, So there's a lot of different terms that mean the
18:56
same thing. And so these plans are offered by private insurance companies to help
19:03
you cover those deductibles because some people think everything's again free once you get on
19:07
Medicare, and unfortunately that is not the case. So there's gonna be deductibles,
19:11
co payments and other gaps that you weren't expecting. So this is where,
19:15
again, having a specialist look at your situation, you know, honestly
19:21
what types of prescriptions you're on health, how good your health is, and
19:26
what we can expect that needs to be covered. So we'll talk a little
19:30
bit about that in a minute. I did want to identify some things you
19:34
really need to understand. There's an initial enrollment period, and that is a
19:38
seven month period three months before your sixty fifth birthday that it includes the month
19:45
of your birthday and three months after your sixty fifth birthday. So during that
19:49
special seven month period of time, that initial enrollment time, you do not
19:55
have to qualify for these policies during that period. Annual enrollment for Medicare is
20:00
October fifteenth through December seventh every year, so that's when you can make changes.
20:07
And again, sometimes people think once you make a decision, I can
20:11
just forget about it for the next five years, and that's really not what
20:15
we want you to do. You should sit down and evaluate did the plan
20:19
or the supplemental policy actually help you, didn't, didn't make sense, has
20:26
your health change and so forth. It's only during that time period where you
20:30
could make changes to a different type of plan. So again, Medicare subs
20:34
have plans A through N. This is completely different than what CJ just mentioned
20:40
about the different parts of Medicare. The medical supplement plans A through and they're
20:45
offered through your familiar names such as EDNA, human As, SIGNA of course,
20:49
Blue Cross, Blue Shield, AARP, and etc. And what you
20:55
need to understand is that each of those policies will go by the same letter.
21:00
And if they go by the same letter plan A Medical Supplement Plan A
21:04
at this carrier compared to another carrier, all the services and benefits have to
21:11
be the same. However, what could be different, of course, is
21:15
the cost. Of course, it could be the you know, who's got
21:18
better servicing of claims, and those are all important things to kind of zero
21:23
in on to figure out what might be the best one for you to start
21:26
on or for you to change two. So it gets really confusing, and
21:32
as CJ mentioned, all this all these different private companies are going to be
21:36
sending new information. I had one client say, I don't know why I'm
21:40
getting all this paperwork in the mail. I mean they think I'm turning sixty
21:44
five. And the person had literally forgotten how old they were, and that's
21:47
why they were being targeted because they were they had turned sixty five or we're
21:51
about to turn sixty five. So there's a reason for that. People need
21:56
to understand Medicare supplement pricing. So it ran quite a bit, but we'll
22:02
tell you the average cost is about one hundred and fifty five dollars per month.
22:07
It depends again on what your needs are, the company you choose,
22:10
and your age. So you can switch Medicat plans at any time, but
22:15
you could be charged more or denied coverage based on your health if you choose
22:19
or change plans more than six months after signing up for Part B. So
22:25
again, contact a local Medicare sub provider find out what's going to work best
22:29
in your situation. One common question we get is can I get Medicare with
22:33
a pre existing condition? Yes, even with a pre existing condition, you
22:37
can enroll an original Medicare or a Medicare advantage plan. But you're going to
22:42
want to find out about your situation. Talking this morning with our retirement plant
22:47
professional CJ Class Emilia Quavis learn more online Class Financial dot com. That's Klaas
22:52
Financial dot com and their telephone number six O eight four four two five six
22:56
three seven. Don't forget that initial gets to know your appointment at Class Financially
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it is plementary to you. And again they're number six O eight four four
23:03
two five six three seven. Anything else, Malia, we need to be
23:06
aware of in this area. Yeah, So when I'm talking about Medicare supplement
23:08
plans, if you don't sign up when you first become eligible, the insurer
23:12
could impose a waiting period before your coverage takes effect for any of those pre
23:18
existing issues. So you want to make sure that you sign up when you're
23:21
supposed to at the beginning. And one other mention, I personally know a
23:26
few people that deal with this since nineteen. Since twenty twenty one, people
23:30
that have end stage renal disease, they can either they can choose either original
23:37
Medicare or Medicare advantage plans for Medicare coverage, and that's been an effect since
23:42
twenty twenty one. Just something to be aware of, a really important thing
23:45
to know about. Talking this morning with our retirement planning professionals Malia Quavis and
23:48
c J. Class. Of course they come to us from Class Financial to
23:52
website Class financial dot com. That's Klaas Financial dot com. Great website and
23:57
resource to learn more about Class Financial. Also an opportunity there to sign up
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for the weekly Market Pulse newsletter and listen back to this and previous shows podcasts
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All up at class financial dot com. Their telephone number six O eight four
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four two five six three seven. No charge for that initial get to know
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your appointment dot Class Financially. It is complimentary to you again their number six
24:15
to eight four four two five six three seven. Talk about if you're working
24:19
at age sixty five, what it needs to know when it comes to Medicare.
24:22
We'll get the details on that. We'll do the listener question corner and
24:26
of course the Money in Motion Class quiz question the leak. We will do
24:29
all of that coming up in the next segment here on thirteen ten WIBA.
24:36
This is Money in Motion with Class Financial, a fun and informative show designed
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to help you get answers to all your retirement questions in one place and always
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just a ton of information in this week's program. I know on mornings we
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often get busy, step out, grab some coffee, dropping kiddos and grandkids
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off to school, other things going on, so you may miss part of
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the show. Great opportunity if you go to class Financial dot com that's klaas
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Financial dot com. You can listen back to this show as well as previous
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show's podcasts. Again all the weebsite Class Financial dot Com, telephone ra for
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the office right here in Madison six eight four four two five sixty three seven.
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At first appointment with Class Financial, it will be complimentary to you,
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and again the telephone number six O eight four four two five six three seven.
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Talking this week about mediccare and all of the ins and outs and really
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kind of a great overview so far of what medicare is, different parts,
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different things. You need to be aware of one of the questions. I
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know, as we're living and staying active longer and wanting to do things that
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we love, like work, a lot of folks are saying, you know
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what, I'm going to keep working at sixty five. Do you have to
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go on to Medicare or what do we need to know there? CJ.
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Yeah, this is a confusing area for a lot of people because they go,
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I know, I've become eligible for Medicare at sixty five, but I'm
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choosing to continue to work. Maybe they're they're working because they have to,
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or they're working because they want to, or they just love their job,
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or are working because they want to get to Social Security full retirement age,
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which for many Americans is getting close to sixty seven now. So for any
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of those reasons, what you need to know about this is kind of how
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this works depending upon your employer structure. So whether or not you need to
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enroll in Medicare at sixty five and continue and if you continue to work and
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have health insurance through your job, it actually depends on how large your employer
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is. The same rule applies if your health insurance comes from your spouse's job.
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By the way, so if the employer has twenty or more employees.
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Then here's kind of the way it works. For as long as you have
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health insurance from an employer for which you or your spouse actively works after you
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turn age sixty five, you have the right to delay enrolling in Medicare until
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the employment or the coverage stops, whichever happens first. At that point,
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you're entitled to a special enrollment period of up to eight months to sign up
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for Medicare without incurring any late penalties or having any of those pre existing condition
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issues that Malia was talking about. They consider that like a qualifying event.
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Note that active employment for your own or your spouses is the key phrase here.
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You can't delay Medicare enrollment without penalty if your employer sponsored coverage comes from
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retire ree benefits or COBRA, which by definition do not count as active employment.
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So here that loud and clear. Often people will take COBRA, which
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is an eighteen month or longer extension of their workplace health insurance plan, or
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they have retiree medical benefits offered by their employer. By the way, that's
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becoming much less common these days, but what a great benefit when it's available.
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So they'll take this retiree medical benefit thinking I'm still on my active employment
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through work, and it's not considered active unless you are, surprise, surprise,
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actively employed. It is entirely your choice, not the employers, whether
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to accept the employer health plan and delay Medicare enrollment, or decline the employer
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coverage and rely wholly on Medicare, or have both the employer coverage and Medicare
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at the same time. So again, this is all for people who have
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employers with twenty or more employees. However, if you enroll in both the
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employer plan and Medicare Part B, be aware of the consequences. In that
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situation. The employer plan is always primary, meaning that it settles medical bills
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first, and Medicare only pays for services that it covers but the employer plan
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doesn't cover. So unless the employer coverage is very poor, you'll be paying
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monthly premiums for that Medicare Part B with little or no return. Also,
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by signing up for Medicare Part B, you will still have current employer coverage.
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You could be forfeiting for your right to buy Medicare supplement insurance known as
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MEDICAP METICAP insurance. So long story short, if you're kind of hearing what
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we're saying, you should be taking notes saying, oh, this is maybe
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not something I want to do on my own exactly. But I would say
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to you as really really really seek some professional guidance here. We work with
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a couple of wonderful Medicare supplements and Medicare parts the advantage specialists who just spend
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all day, every day in this space and help our clients really navigate this.
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I'll tell you what a one or two hour long conversation with one of
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those people is the equivalent of four years of studying this on your own.
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And I mean that sincerely. Just a huge help there, talking this morning
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with our Retirement Planet professional CJ. Classimle Aquavius website, class financial dot com.
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That's klaas Financial dot com at the telephone number six to eight four four
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two five six three seven. So we mentioned if your employer has twenty or
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more employees, what if it's nineteen or less? What we need to know
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there, CJ. Yeah, So if it's if it's a smaller employer with
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less than twenty employees, the law that prohibits large insurers from requiring or even
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persuading Medicare eligy employees to drop the eployer plan and sign up for Medicare.
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That does not apply to these smaller companies and organizations that employed less than twenty
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people. In that situation, the employer decides. If the employer does require
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you to enroll in Medicare, then Medicare automatically becomes primary and the employer plan
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provides secondary coverage. In other words, Medicare settles your medical bills first,
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and then the employer plan only cover services that it covers, but Medicare does
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not. So be aware twenty or more. There's certain provisions that apply that
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they give you optionality, we'll call it. If it's twenty or less.
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Then your employer can have some requirements as it relates to their plan being kind
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of in a secondary position over Medicare. So know who it is that you
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work for, Have a conversation with the benefits or HR department if you have
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any questions, and please, by all means connect with a Medicare specialist as
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you start getting closer to those key ages, absolutely fascinating stuff, very important
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stuff as well. Start that conversation, of course, and learn more if
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you miss any speaking of learning more. If miss any part today's program don't
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free, you can always listen back at the website class financial dot com that's
31:07
Klaas financial dot com. Subscribe to the weekly market Paul's newsletter. Also,
31:12
while you're there, you can submit a question right online at class financial dot
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com that's Klaas financial dot com and it'll be answered here in our Money in
31:21
Motion listener question corner and Jeremy rode In says, I'm turning seventy three in
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October of this year, when must I take my first required distribution? I
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think you're probably referring to your your RMD, which you're correct. You do
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need to start taking either this year if you're just turning seventy three as you
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said, or at by April first of next year. So what you need
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to understand is, though, if you do wait till next year, taking
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it by April first, you're also going to have to take your RMD for
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twenty twenty four. So that might put your situation depending on how large your
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pretext retirement accounts out there are, and might bump you into another income category
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paying a higher rate if you have to take both in the same year so
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you want to sit down with your financial advisor and see if that makes sense.
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But understand you're going to be taking your RMD from a collection of your
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old I ra is old four oh one ks, and make sure you have
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an RMD calculator at hand so you know how much you're going to have to
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be taking out. Thanks for the question, great question, Jeremy. Don't
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forget. If you ever have a question, you can submit it right online
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Class Financial dot com that's Klaas Financial dot com. And speaking of rmds,
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we did a show recently about those very provisions and what you need to know
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when it comes to those distributions. You can listen back to that podcast.
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So well, is this show right at class financial dot com. That's Klaas
32:52
Financial dot com. That's telephone number six O eight four four two five six
32:55
three seven. No charge for that initially. Get to know your appointment at
32:59
Class Financial will be complimentary to you again their number six to eight four four
33:02
two five six three seven. Go on to hold on to that telephon number
33:06
as well, because it's time now for the Class quiz question the week.
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It works like this, In just a moment, I'll ask you the Class
33:10
Quiz Question the Week. You will then have thirty minutes to call the Class
33:14
Financial Office right here in Madison at six O eight four four two five six
33:17
three seven. If you are the first call correct answer, you win this
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week's prize, which is a twenty five dollars gift card to Olive Garden.
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This week's Class Quiz Question the week is this true or false? If you
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or your spouse paid endom Medicare payroll taxes for at least ten years Medicare Part
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A, that's your hospital insurance will be free for you. Telephone number six
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O eight four four two five six three seven. True or false on that
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one six eight four four two five six three seven. That's Class Financial Office
33:47
right here in Madison. Don't forget as well. No chart for the finitially
33:51
gets no you appointment Atlas Financially. It will be complimentary to you again the
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number six O eight four four two five six three seven. Melia CJ.
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It's always great hanging out with both of you guys. Enjoy this beautiful day.
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Thanks sons. News is next right here in thirteen ten w IBA.
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This is Money in Motion with Class Financial Asset Advisors LLC, a registered investment
34:16
advisor registered with the SEC. The content of this show is for informational purposes
34:22
only and should not be considered individual investment advice. Class Financial does not offer
34:29
tax or legal advice. Any opinion offered during the course of this show is
34:32
the opinion of that particular investment advisor representative, and not necessarily the opinion of
34:37
Class Financial.