Below are some things to understand about how working affects your Medicare benefits.
Source below is from a Nerdwallet Article by Kate Ashford.
You may be able to delay Medicare enrollment
If you’re still working at 65 & still have access to health benefits through your employer, or your spouse’s employer, you may be able to delay enrolling in Medicare without penalty. If your company has fewer than 20 employees, you should sign up for Medicare, but if it has 20 plus employees, you may be able to put it off.1
If you have the choice, compare what you would pay for group benefits through your employer with what you would pay for Medicare, including any supplemental coverage and/or prescription drug benefits. “If the group coverage is less, then it may make sense to not get Part B and wait until you retire,” says Julie Hall, a certified financial planner in Ann Arbor, Michigan. (Part A is free for most people, so there’s no point in delaying that Part A benefit unless you have an HSA).1
Make sure to contact your benefits department before delaying to make sure your employer doesn’t require you to enroll in Medicare.1
An HSA and Medicare don't mix
If you have a high-deductible health plan along with a health savings account, or HSA, be aware that you can’t save to an HSA once you’ve enrolled in Medicare! An HSA can be a valuable retirement savings tool, so it’s worth weighing your options if you have access to employer benefits that allow you to delay Medicare.1
“I see [an HSA] as a triple tax benefit,” says Diane Pearson, a CFP in Wexford, Pennsylvania, about the fact that money can be saved pretax, grow tax-free and be withdrawn pretax to pay for eligible medical expenses.1
If you’re collecting Social Security, you’ll be automatically enrolled in Medicare Part A when you turn 65; if you want to save to an HSA, you’ll have to delay Social Security benefits. If you plan to enroll in Medicare and you have an HSA, both you and your employer should cease contributions at least six months before you apply for Medicare to prevent tax headaches.1
Your earnings affect your Social Security payments
To read more on this item regarding Social Security payments, click on the web link below:
https://www.nerdwallet.com/article/insurance/medicare/working-past-65
Your income affects your Medicare premiums
Medicare Part B and Part D are subject to the income-related monthly adjustment amount, or IRMAA. The more you earn, the higher your premiums will be.1
In 2023, you’ll pay more for Part B and Part D if your modified adjusted gross income from two years ago was more than $97,000 as a single tax filer or more than $194,000 if you filed jointly. The extra costs can add up, and experts recommend factoring this into your work plans.1
1. Source: Nerdwallet Post by Kate Ashford
https://www.nerdwallet.com/article/insurance/medicare/working-past-65
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