With a traditional individual retirement account, contributions are made before taxes are paid. Because of this, if you leave a traditional IRA to a beneficiary, the distributions would be subject to taxation. The situation is reversed when a Roth individual retirement account is transferred to a beneficiary. Contributions are made into the account after taxes have been paid, so distributions are not taxed. There is a concept called “stretching an IRA” that can be a very effective estate … [Read more...] about What are the rules for an inherited individual retirement account?
IRA and Retirement Planning
Yes, Medicaid is another government health insurance program that does pay for nursing home care. However, it takes careful planning to qualify, because there are income and asset limits. … [Read more...] about Is there a solution?
According to the United States Department of Health and Human Services, 35% of seniors will someday reside in nursing homes. Since Medicare is designed to satisfy the health care needs of elders, it would be logical to assume that it does pay for nursing home care. Unfortunately, even though many would say that it is not fair, Medicare does not pay for the custodial care that nursing homes provide. … [Read more...] about Does Medicare pay nursing home expenses?
Absolutely not, there are relatively significant out-of-pocket expenses, including copayments, deductibles, and premiums. In fact, the program will only pay 80% of covered treatment that you receive from doctors. … [Read more...] about Does Medicare pay for all health care bills in full?
No, everyone that has enough retirement credits will become eligible for Medicare coverage at the age of 65. … [Read more...] about Is the eligibility age for Medicare the same?
This is a question that is more complicated to answer than you might think. First, you have the option of taking an early retirement benefit when you are as young as 62 years of age. However, if you do this, your benefit will be reduced by somewhere between 25% and 30%. The eligibility age for your full benefit depends on your birth year. For people born between 1943 and 1954, it is 66, and it then goes up by two months per year. The two-month per year graduation ends in 1960 when it reaches … [Read more...] about When do you become eligible for Social Security?
Most of them do, but it is not a given. When you are working and paying FICA or self-employment taxes, you earn retirement credits that lead toward Social Security eligibility. You can get as many as four credits in a year, and anyone that works full-time or part-time on a consistent basis will get the maximum four credits. Once you have at least 40 credits, you will be able to receive a Social Security benefit. … [Read more...] about Do all senior citizens get Social Security?