Medicare and Social Security Decoupled

hands by mijitaBack in the olden days, when you had only the choice of age 65 to apply for Social Security retirement benefits, Medicare and Social Security went hand-in-hand.  At the same time that you applied for Social Security retirement benefits, you would also apply for Medicare – all at age 65. In the continuous evolution of the Social Security system, as we all know, the age for full retirement benefits has increased – up to age 67 for some folks now.  Plus you have the option of applying early for your retirement benefit, as early as age 62.  While all this was going on, Medicare… didn’t change.  For most folks, access to Medicare begins at age 65, which is now decoupled from the ages for Social Security benefits. So, with this decoupling, it is important to keep Medicare in mind as you reach age 65 – because applying late will cause a possible 10% penalty per 12-month period that you delay applying.  This penalty will continue for the rest of your life.
Photo by mijita
IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment).

About the author

Jim Blankenship, CFP®, EA

Jim Blankenship is the founder and principal of Blankenship Financial Planning, Ltd., a financial planning firm providing hourly, as-needed financial planning and advice. A financial services professional for over 25 years, Jim is a CFP professional and has earned the Enrolled Agent designation, a designation that qualifies him as enrolled to practice before the IRS. Jim is also a NAPFA-registered financial advisor, which designates him as a Fee-Only Financial Advisor.

An IRA Owner's Manual
A Social Security Owner's Manual

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Copyright 2014   About Us   Contact Us   Our Advisors       Login