# warning -sell any assets you want to sell at least 3 years before medicare



## mathjak107 (Jul 18, 2016)

so two years ago we were not retired nor were we on medicare .

our real estate partnership sold some commercial lease rights back in 2014  and we had no control over the sale as we had senior partners .

well last january when my wife went on medicare we got a notice that because of the sale in 2014 her premiums were going to be a whopping 300% more . they were jumping from the 104.50 to 399.50 a month .

if both of us were on medicare the increase would have been 600 per month .

medicare goes back two years and retired or not  , on medicare or not  , that is the income used .

we did appeal it and won a roll back on technicality's  but it was really up to the whim of our auditor at ss .

so make sure anything you want to sell that will generate big capital gains , you sell more then 2 years before medicare age .

also , in 2018 they are adding more income brackets where if you exceed the  magi you will pay more for medicare . so that means anything you sell this year can burn you  if it brings your magi income high emough .


----------



## mathjak107 (Jul 18, 2016)

here are the changes in 2018 that will be using your 2016 income 

you can see a new income bracket was added  , the 160k to 214k bracket now gets an increase . while these income  levels sound high  , selling assets with decades of pent up  gains can easily trigger some of them .

since medicare users are expected to pay a large percentage of the costs of  medicare that year ,  these are the percentages your income bracket will be expected to absorb . so someone in the 160 to 214k income range will be expected to pick up 80% of medicare costs along with those in the 214k range .


----------



## OneEyedDiva (Aug 4, 2016)

Good to know though it's not a problem I have to worry about at this point but I love sharing financial information and someone else may benefit from this. Thank you.


----------



## Dennis K (Sep 1, 2016)

Does income from a 401K plan count for this medicare case? Should I decide to payoff say a mortgage for example by taking out money from my 401K which for taxes is considered income. Its bad enough that will put me in a higher tax bracket for that year, but concerned because I am exactly 18 months away from 65 and do not want to run into this issue. And this will be the year used in my case.


----------



## mathjak107 (Sep 1, 2016)

yes it counts as income unless it is a roth


----------



## Dennis K (Sep 1, 2016)

Just getting in to looking at medicare costs.  If the medicare premium I  pay in 2018 will be based on 2016 adjusted income. Will 2019 premiums be based on 2017 income and so on? Or will I be locked in on the 2016 income adjustment? Thanks, getting closer and trying to figure it all out.


----------



## mathjak107 (Sep 1, 2016)

each year your premium is based on income 2 years before .


----------

