Except from “Social Security: Maximize Your Benefits”

A Potential “Gotcha” for Medicare and the File and Suspend StrategyIn July 2012 Laurence Kotlikoff, Professor of Economics Boston University and President of Economic Security Planning, Inc., in an article for Making Sense (a PBS publication) stated that if you select the File and Suspend approach and don’t pay your Medicare Part B premiums via your own checking account the consequences can be severe. The SSA will pay your Medicare premium for you and deem you as waiving your suspension of benefits and you won’t accrue DRCs. To sum it up, if you don’t pay your Medicare Part B premiums from your own checking account, when you retire your benefit will be no greater than when it was on the day you suspended benefits. The monthly Medicare payment for 2012 is $99.90.  For more information and exceptions to this rule see www.medicare.gov/default.aspx

About ksindell

Kathleen Sindell, Ph.D. is the author of numerous academic, popular, and professional finance articles, Web sites, proposals, and books. This includes the bestselling reference book, "Investing Online for Dummies, Eds 1-5" (listed for two consecutive years on the Wall Street Journal's Bestselling Business Book List). Her most recent book "Social Security: Maximize your Benefits" has been listed in Amazon's Top 100 Bestselling Retirement Planning Books. It is important to note that "Social Security: Maximize Your Benefits, 2nd Edition" was just released. Sindell has an in-depth understanding of the financial services industry and has held Series 7, 63, and 65 licenses. Dr. Sindell is regularly tapped as a financial services expert on ABC World News, The Nightly Business Report, and at popular online and print outlets. Kathleen Sindell, Ph.D. is a member of the Board of Directors for the Financial Planning Association, National Capital Area (FPA NCA), is on the Editorial Advisory Panel of the Journal of Financial Planning, and is Co-Chair of the Metro Washington Financial Planning Day. Sindell is a Course Chair II, CFP Program Academic Officer, and adjunct full-professor at the University of Maryland, UMUC, School of Undergraduate Studies. Contact Information: ksindell@kathleensindell.com or 703-299-1700
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