401K/IRA SPOUSAL INHERITANCE impact on Medicare Premiums
If my wife or myself pre decease the other and inherit the 401k/IRA, does that money effect the medicare premium because of the increase in income?
Reason I ask the question!
We needed to withdrawl monies from our retirement savings to pay for a hacked house settlement. This action almost tripled our premium for medicare because Soc Sec did not see the loss as a life changing event!
Terry Says
An inheritance is not considered income. However, under new rules the beneficiary of an inherited IRA or 40l(k) must roll it over and withdraw the entire amount within 10 years. So that additional withdrawal could increase income enough to raise the cost of Medicare premiums — depending on other earnings in that same year.
