Page 6 - Jupiter West - January '25

Page 6, Jupiter West

Medicare Corner Financial Focus ®

With Kathy O When Is A Good Time For Timing also comes into play with the financial markets.
When the market is going through a decline, and the value
Roth Conversion?
of your traditional IRA drops, you could convert the same
number of shares of the underlying investments and receive
Medicare season is By Sally Sima Stahl, a lower tax bill or convert more shares of these investments
over … or is it? Jan. 1 Edward Jones for what would have been the same tax bill.
to March 31 is Open In life, you often get second • Tax-free legacy for your heirs—When your heirs inherit
Enrollment Period. chances—and the same is true your Roth IRA, they can withdraw the contributions without
During this time, with investing. To illustrate: paying taxes or penalties, and if the account has been open for
people on a Medicare You might not have been able at least five years, they can also withdraw earnings tax-free.
Advantage plan may to contribute to a Roth IRA Finally, you could lower your tax bill in any given year
make plan changes. If during your working years by stretching out your Roth IRA conversions over several
you meant to change due to your income level, but years, rather than doing it all at once.
and didn’t, there is still you may get that opportunity But even if you were aware of these advantages, you
time. If you chose the as you near retirement or might not have been able to invest in a Roth IRA for
wrong plan, you can even when you are retired— much of your life. For one thing, you might have earned
change back to your original plan. Contact me to see through a Roth conversion. too much money— a Roth IRA, unlike a traditional IRA,
if I can get you more benefits or lower costs than your And you can do so by converting your traditional IRA has income limits. Also, a Roth IRA has only been around
current plan. to a Roth. While this sounds simple, there’s a major caveat: since 1998, so, in the previous years, you were limited to
What about drug plans and supplement plans? If you taxes. You’ll be taxed on the amount in pre-tax dollars you a traditional IRA.
are turning 65 or just activating your part B coverage contributed to a traditional IRA and then converted to a Roth You’ll want to consult with your tax advisor before
now you can enroll in any plan. There are other IRA. (If you have both pre- and after-tax dollars in your embarking on this conversion—but if it’s appropriate for
circumstances that may give you a Special Enrollment traditional IRA, the taxable amount is based on the percentage your situation, you could find that owning a Roth IRA can
Period. of pre-tax dollars.) benefit you and your family for years to come.
People with Medicare and Medicaid have more Why is a Roth IRA desirable for some people? Here are the As you approach retirement, though, you might start
options. Full Medicaid beneficiaries can change any key benefits: thinking of just how much you’d like to benefit from a
quarter. Medicaid beneficiaries are eligible for plans If you have large amounts in a traditional IRA, the tax bill on Roth IRA.
that offer groceries. You may apply for Medicaid at conversion can be significant. The key to potentially lowering This article was written by Edward Jones for use by
myaccess.myflfamilies.com, this program is for very this tax bill is timing. Generally speaking, the lower your income your local Edward Jones Financial Advisor, Edward Jones,
low-income people. in a given year, the more favorable it is for you to convert to a Member SIPC.
Choosing your Medicare and drug plan is very Roth IRA. So, for example, if you have already retired, but have Edward Jones is a licensed insurance producer in all states
important, but not necessarily permanent. This is not started collecting RMDs, your income may be down. and Washington, D.C., through Edward D. Jones & Co., L.P.,
why the assistance of a no-cost local agent like me • Tax-free withdrawals—you put in after-tax dollars to a and in California, New Mexico and Massachusetts through
is invaluable. Roth IRA, so you can withdraw your contributions at any time, Edward Jones Insurance Agency of California, L.L.C.;
Medicare New Year’s Advice free of taxes and penalties. And if you’ve had your account Edward Jones Insurance Agency of New Mexico, L.L.C.; and
Review plan information so you understand for at least five years and you’re at least 591⁄2, you can also Edward Jones Insurance Agency of Massachusetts, L.L.C.
benefits. withdraw your earnings free of taxes. Edward Jones, its employees and financial advisors cannot
Download apps that your carrier offers to manage • No RMDs—With a traditional IRA, you’ll have to start provide tax advice. You should consult your qualified tax
claims and benefits. taking withdrawals — called required minimum distributions, advisor regarding your situation.
Review medications with doctor at your annual or RMDs — when you turn 73, or 75 if you were born in 1960 Contact us at (561) 748-7600, Sally Sima Stahl, CFP ,
®
exam. or later. But there’s no RMD requirement with a Roth IRA — AAMS , 1851 W. Indiantown Road, Ste. 106, Jupiter, FL
™
Earn rewards or use any extra benefits your you can essentially leave the money intact as long as you like. 33458.
Advantage Plan offers each month.
If you still need to review or change your Medicare “Service is our number one priority”
plan, Open Enrollment is Jan. 1 to March 30 and you
may qualify for a Special Enrollment. Call me! If 561-743-0070
you have Medicare Topic suggestions, email me
at czak82@aol.com.
I speak Medicare: Supplement, Drug Plan and www.palmspoolservices.com
Advantage Plan.
For your free Medicare plan review please call
me. Kathy Olejniczak, Agent, at (561) 835-5413 or
cell/text (561) 212-7640.

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