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IRMAA is an often-overlooked Medicare surcharge that can significantly increase your healthcare expenses in retirement.

Healthcare expenses can represent one of the largest categories of expenses for retirees—even if you’re eligible for Medicare. In fact, new findings from the Employee Benefit Research Institute (EBRI) project that retired couples who are Medicare beneficiaries may need to set aside more than $400,000 to cover medical expenses in their golden years.

As people live longer and medical costs continue to rise, managing healthcare expenses is becoming an increasingly critical aspect of retirement planning. This is especially true once you become eligible for Medicare, as your income can meaningfully affect your premiums if it exceeds certain thresholds.

That’s why it’s essential to understand what IRMAA is, so you can plan accordingly for this often-overlooked Medicare surcharge. By carefully managing your taxable income as a Medicare beneficiary, you can minimize the potential impact of IRMAA on your retirement budget, preserving more of your hard-earned nest egg for other retirement goals and expenses.

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The new 529-to-Roth IRA transfer rule may help parents maximize the next generation's educational savings and avoid unwanted taxes.

For years, the 529 plan has stood out as a favored method to set aside funds for college. Yet many parents have approached these plans with caution, wary of the financial penalties they might face if the beneficiary either chose not to pursue higher education or didn't utilize the entire balance.

The introduction of a potentially game-changing rule intends to make the prospect of contributing to a 529 plan more appealing. Beginning next year, beneficiaries can transfer unused 529 funds to a Roth IRA, allowing parents to sidestep unwanted tax penalties and redirect their contributions toward the beneficiary’s retirement savings.  

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Setting financial boundaries isn’t easy, but doing so is essential for financial stability and peace of mind.  

For many of us, the festive spirit of the holiday season brings with it a surge in shopping, travel, and social gatherings. The holidays can also mean more time with family and friends, some of whom may ask for financial support or persuade us to spend money in ways that don’t serve us.

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As you approach your golden years, healthcare planning becomes increasingly important—and often more financially challenging. While traditional Medicare offers a basic level of coverage starting at age 65, it doesn't cover everything. This leads many people to consider options such as Medicare Advantage or supplemental health insurance (known as Medigap) to reduce their out-of-pocket expenses.

But if you're new to Medicare, how do you determine which option is best for you?

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As the holiday season draws near, financial planning may be the last thing on your mind. However, year-end is often a crucial period for proactively lowering your tax bill and taking steps to set yourself up for financial success in the year ahead. Use this year-end financial planning checklist to end 2023 on a high note and start the new year with confidence.

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Merging lives with a partner or spouse can be both challenging and rewarding. Yet few aspects of this process are as complex as deciding whether to combine finances—and if so, how.

Indeed, sharing a financial life with another person offers a variety of joys and benefits, such as collaboration, mutual support, and shared financial goals. But it can also lead to misunderstandings, resentment, and in extreme cases, divorce.

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