Demystifying Medicare Surcharges: with Paul Morrison

He's been hosting Safe Money Radio for over 15 years and his Safe Money Radio podcast has subscribers from all across this great nation . Whether you're listening on the radio or listening to his podcast , mr Pistole wants to say thank you for joining us today and now with more ways to show you how to keep your money safe and secure .

Here's your host of Safe Money Radio , brad Pistole .

We had over 415,000 views of this video and this topic in just two weeks time . So we want to jump in and get into this material today . So maybe you're joining us for the first time . You've never listened before . We thank you for joining Safe Money Radio . We've been on the air for 15 years in a row now , and today we have our good friend .

He's a returning guest of many , many times Paul Morrison . Paul , thank you so much for joining us again today .

is a hot topic right now . We just mentioned that there's a letter that you do not want to get once you retire and it's an Irma letter from the federal government . And , like I said , we put this video up and there were over 415,000 views of it in a couple of weeks and over 800 comments .

So you know , the last few weeks have been something , Paul , I think I have over 200 emails from people all across the United States that are asking all kinds of questions about Irma , and I've been trying to . If you're watching right now and you watched the original video just know we're trying to get to every request for information as quickly as we can .

And if you're listening right now and you're like , well , what in the world is Irma ? I don't even know what you're talking about .

Remember , this is a game of net income , not gross income in retirement Right , of net income , not gross income in retirement Right . When , by the time when you're in your mid seventies or early eighties , when you need your social security net income the most .

They'll trigger their Social Security as they retire and if that happens , of course all kinds of things are happening . Their traditional health insurance is stopping . From their work , from their place of work , they go on to Medicare .

Their income stops and it changes to Social Security benefits and a combination of either a pension or a tax deferred retirement plan . Sometimes , and for a lot of people in this country , it is just Social Security . That's all they've got . And there's a gross payment amount and there's a net payment amount .

And this is what people don't realize until they get to the situation they turn 65 . They go on to Medicare , they trigger Social Security . Or maybe they were already on because you could don't realize .

Until they get to the situation they turn 65 , they go on to Medicare , they trigger social security , or maybe they were already on because you could start at age 62 . And then you get this gross number and this net number .

Well , the net number , of course , is often based on the result of the Medicare Part B premium being deducted from your social security payments . That's not how you have to pay for it , but most people choose to do that .

So whenever I'm doing income planning with someone and I'll say what's your social security benefit , and they'll say , oh , you mean gross or net . Well , let's do both . I want to know both of them what's your gross , what's your net ? Because I may discover a problem there whenever we look at that .

But yes , we're going to talk about an example later in the show today . If you're with us , stay with us , because we're going to be addressing several of the comments that got made during this 415,000 viewed video , where a lot of people said things that weren't true .

And and if you're listening right now , I will say this when I use the word ignorant , I don't mean you're stupid . I mean you're ignorant of something there . I'm ignorant of how bad the Chiefs were going to play last night . It was bad .

I was very ignorant of the fact that they weren't as good as the team they played and they got walloped in the Super Bowl , ok . So here's the thing . So if you don't know something , you're ignorant of that fact .

A lot of people made comments on the video , that they were not aware of the right information , and so they just made blanket statements saying oh well , this only happens to rich people , oh well , they should have to pay their fair share of taxes anyway . And what they don't realize is that is not true . A lot of those circumstances are not true .

There are special situations that can happen where this does not happen to wealthy people and it's out of their control , and we're going to be talking about that on the show today .

So , paul , as we get going , if you will , just real quick , so that people can understand your background and your work with Irma , talk about what happened this last September with the Irma University , that you guys did and what you're doing to teach advisors all across the country .

I'm going to keep saying this until this changes If you look at the financial service and the financial planning industry , if you look at the tax planning industry whether they're EAs , cpas , financial advisors what I'm specifically talking about , there's a lack of education on the subject matter of IRMA , along with the planning with pre-retiree retiree clients , and one

of the reasons , one of the core reasons why we decided to host an event in Omaha , nebraska , back in September of 2024 was called Irma University . And what was interesting was is on day one , we went through the IrMA designation .

The second day , you know we went through this we actually have a software I'm going to talk about a little bit in this later on this episode where you can forecast your you know your total Medicare costs along with you know what your IRMA brackets are going to be in retirement .

I always say , well , everyone says how dangerous IRMA is , or it's not that big of a deal . Run an IRMA report , man . It's going to tell you right there what your Medicare costs are and what your Social Security is really going to look like . So we went over the software on day two and then we went into .

You know , some ways to educate , some processes to educate your existing clients and maybe some new prospects are going to become clients . On the subject matter of Irma , and I can tell you this , brad , I'm just going to tell you this man , the quality of advisors that came to Omaha , nebraska . If I had to give it a grade it was an A+ .

These advisors already are doing Roth , partial and full Roth conversions . They're looking at every single potential tax in retirement , every type of tax to avoid . They're trying to carry what I call freedom accounts . Freedom account means you get to keep 100% of your dollars , not the government . So , brad , I can't tell you it was an unbelievable event .

I wish I could do 10 to 15 a year , because the education on tax planning was at a whole different level . It really was one of the higher levels I've seen .

The Irma letter we're going to share today is from a client of ours who said I just got an Irma letter and they're going to be dealing with this more and more and more . So let's do this . Let's take a quick break as we get started . We just want you to know if you're listening . You can call us anytime , 866-780-safe . That's 866-780-7233 .

If you want a free consultation , if you want us to look at your income , if you want to see if you're susceptible to potential Irma problems down the road , just call us . We're glad to help . 866-780-7233 . There's always someone standing by to take your call . Well , I must take a short break . This is Brad Pistole and you're listening to Safe Money Radio .

Let's pause for some exciting announcements .

Wouldn't you rather enjoy your mornings instead of filling them with the stress of the markets ? Call us now and we can show you how to sleep at night without worrying about market and outliving your retirement money . Our phone number is 866-780-SAFE . That's 866-780-7233 . Now back to more Safe Money Radio with your host , brad Pistole .

So , behind a lot of people's names , you have all these letters Okay , and some of those letters . You can go get on an online course that takes about an hour , pay a hundred bucks and boom , you've got some letters . I don't have any of those . All the designations behind my name take three to six months . A lot of them . Some of them took a year .

Some of them took a two-day , all-day long course . But I will tell you this I'm a retirement income certified professional through the American College of Financial Services . That is a six to nine-month course , multiple college hours , three final exams . I'm a certified annuity specialist very similar three final exams .

I'm a certified financial fiduciary , an income-related monthly adjustment amount certified professional . I've been training with the Ed Slott Group for 15 years and I'm currently in the tax planning certified professional designation course through the American College of Financial Services , in the very first course of people to ever get that designation .

I'm in part two of three . My final exam for part two is two days from now .

Why do I tell you all of that ? Here's why I spoke at a conference in Dallas a week ago Now . I was honored to share the stage with Hall of Fame , running back from the Dallas Cowboys , emmitt Smith . I was able to share the stage with a couple of other just Joseph Jordan , just one of the best keynote speakers of all time .

He was the opening keynote speaker for the Million Dollar Roundtable , the Association of Premier Financial Advisors Some incredible people . Why do I say all this ? Guess what's covered in almost every one of these topics , every one of these classes , every one of these designations ? Guess what the people who were speakers at the conference talked about ?

Joseph Jordan got up and talked about income-related monthly adjustment amounts . I'm in the tax planning certified professional course right now .

In this course , for this test , we are talking about income-related monthly adjustment amounts In the RICP course income-related monthly adjustment amounts , which , when you hear it over and over and over again and you realize people that are truly deeply connected to education and to doing what's best for their clients , you're going to see a lot of income-related monthly

adjustment amount talks , talking about this IRMA surcharge . It's on everyone's radar . So I know that was a long introduction to this section , but here's what I want to do . You know , paul and I , our guests today . We had this topic covered here in a video a few weeks ago more than 400,000 views in two weeks .

We struck a nerve with people and here's why More than 9 million people received Irma letters in 2024 . I want to say that again 9 million people . This isn't a small problem . That represents $23.4 billion in surcharges . Paul , talk to us about this and what's going on .

What I mean by that is that if you look at investable assets , they have investable assets between one to four million Okay , one to one to one to one to four . One to five million investable assets , okay , yeah .

Problem is is that you know I just ran so just to let you know , I just ran an actual IRMA report for a couple that was going to go into retirement make $360,000 a year taxable . All their assets are taxable . I got about six and a half million in assets , total investable assets .

Ok , so they're very well off , right , a couple hundred dollars is not a big deal , wrong ? I ran the report from age 67 , when they retired , to 90, . They're going to pay out over one and a half million dollars in Medicare costs . Wow , wow , they're eventually by age 72 . For the husband , he's going to be in the fifth area of my bracket , okay .

Also , I showed if it was , if they're $360,000 annual retirement goal , so they had 360,000 a year to hit for a goal and adjusted for inflation by 3% a year . By 72 , he was underfunded by that goal by $77,000 . Wow .

Does this only apply to rich people and they need to be just suck it up and pay their fair share anyway ?

Like I said earlier in my comment , you lose 60 to 100% of your Social Security net benefit by the time you're in your mid-70s early 80s . That's not a minimum distribution anymore . That's a maximum distribution because I'm not withdrawing 4% or 5% anymore out of my assets .

I'm withdrawing 7% to 10% out because I'm not withdrawing four or 5% anymore out of my assets . I'm withdrawing seven to 10% out because I got to make up the loss of my social security net benefit from Irma and the Medicare part B and D base rates .

But just because you fall into the all American work ethic that you can do and become anything you want to do in the sky's the limit . And just because you're successful does not mean you should have to turn around and empty your pockets back to the federal government to let them go spend your money any way they want to .

I totally , completely disagree with that . If you made the money , you should be able to keep the majority of it . Yes , I understand that some taxes some are necessary , but I also am a student of history and I know what we were able to do before the federal taxation program started , all the way back in 1913 .

And I know how we survived just fine before it . So all these unnecessary taxes which the government , some in government are trying to put it into right now unnecessary taxation . We're going to be . We're going to be okay without that money .

Thought she was an advisor , she was actually a retiree and she was trying to determine from her RMD that was coming due afterwards what she could convert . I asked her has your advisor sat down and talked to you about this ? No , I'm doing this all by myself . I'm in the third IRMA bracket right now . I've been in it .

I go what roughly do you have in investable assets ? You know I had to get warm in the conversation before she was comfortable sharing this information . You know they're not going to share it right from the get-go . And she said I only have 3 million . So she said I only have 3 million . I'm watching every penny right now . Yeah .

Yeah , wow , friends , if you're listening right now , when we come back from the break , we're going to jump into an actual Irma letter from one of our clients here and we're going to show you that this doesn't happen to just wealthy people , and we're going to show you how this works and how it fleshes itself out . So stay with us .

Our number is 866-780-SAFE , that's 866-780-7233 . If you want our help , if you want a free financial consultation , just call us anytime . There's always someone standing by to take your call . This is Brad Pistole , your host of Safe Money Radio . I'll be right back after this informative message .

Don't decide about your retirement without the facts . Call us now and ask for your complimentary social security guide at 866-780-SAFE . That's 866-780-7233 . You're listening to Safe Money Radio with your host , Brad .

Now , friends , if you're just now joining us on the show , today I have special guest Irma specialist Paul Morrison , and Paul , I'm going to put you on the spot a little bit . I don't know that you have it right in front of you , but I know you know a lot of this stuff .

Let's talk about 2025 , like level one , the ARMA Medicare premium amount , and how high that gets to , all the way down at the highest level of Medicare premium amount for 2025 . What are those numbers ?

So let's talk a little bit about the history of this right now . If you go back to 2007 , okay , yeah , of 2007 right now , if you look at the surcharges , they've been inflating on average by 7.4 to 7.5% on average . Per year Per year on average . yeah , annually per year , correct . So it's interesting

. If you look at the third bracket right now , for the first time since IRM has been enforced since 2007 , it's interesting . The actual third bracket now , the total that someone's going to come out of their social security is $665 a month . So if you add that to a couple , that's over $1,300 a month .

Take that times 10 , take that times 20 , take that times 30 . Oh , let's back it up , let's rewind the tape . Whoa , whoa , whoa , whoa , whoa , whoa . We've got to inflate the EARMA surcharges at 7.5% a year , plus the Part B and D base rates of 6% to 8% on top of that .

Friends , I've said this over and over again on this show you better start paying attention to your modified adjusted gross income in your 63 for the rest of your life . At 63 , it determines your IRMA premium at 65 . At 64 , it determines 66 . So it's always a two-year look back why the federal government doesn't have your tax information yet .

Many of you right now we're filming this in late February , if you are about to do your taxes for this year the federal government doesn't have that information yet . They're not going to know . So they're looking back two years prior . That's why there's this crazy formula going on . But here's what happens .

You have something happen and especially if you're a 63 year old , this happens to you have no clue what's coming at 65 . I mean , how many advisors out there right now are talking to their 63 year old clients about how you better be ready for what's going to happen at 65 when you go on Medicare ? Very few , less than 1% . Well , here's an example .

This is a letter that a client of ours got that they received in the mail from the Social Security Administration , and this is what it says . What you should know based on the information we have , we cannot pay benefits to you beginning January 2025 . Your monthly medical insurance premium is $259 .

The monthly benefit that you should get is less than your medical insurance premiums . The monthly benefit that you should get is less than your medical insurance premiums . We are stopping your monthly benefits starting January 2025 to pay for part of this premium . After adjusting for your monthly benefits , we find that we must bill you for $477.40 .

In an earlier letter we told you that your Medicare Part B premium includes standard Part B premium amount , any surcharge that may apply , any income-related monthly adjustment amounts . There's the IRMA , and so now here's what happens . You have a retired teacher . They have a great pension . Not all of us have pensions , but they have a great pension .

That means their Social Security benefit's really small . It was like $250 a year or $250 a month . Sorry , but here's what happened . The perfect storm . At age 63 , their spouse died . Now they had no clue what was coming at 65 , but at age 63 , their spouse died . Guess what that spouse was ? A business owner , had business real estate .

What do you do when a spouse dies and they own a business ? You sell it . So they sold that business and they sold that real estate . And now you have the loss of a spouse , you have the loss of their income , you have the loss of their social security check .

Because you're a teacher , you're living on a very reduced benefit and then you get a letter from the social security administration that says hey , by the way , your benefits not enough to pay your premium . We're going to take all your benefit and you're going to write us a check for $477.70 for the next 12 months .

That is a massive retirement income problem and I want to do this . I want to share our number real quick and talk about how this impacts families and what you need to do about it . Call us anytime If you've received an IRMA letter like this and it's told you need to do about it .

Call us anytime If you've received an Irma letter like this and it's told you your social security payment is going to be reduced or reduced to nothing and you're going to have to make payments . Give us a call 866-780-SAFE . That's 866-780-7233 .

Now , friends , we were talking about this specific situation where one of our clients received an Irma letter retired teacher living on reduced social security amounts because she has a pension , but at age 63 , she and her spouse both passed away , or her spouse passed away , sorry and she's now left to deal with the loss of a spouse , the fact that he ran a

business , the fact that he owned his business , the fact that he owned his own real estate connected to the business , and she sold all that , closed down the business . And now Social Security has come in and said hey , we're taking all of your Social Security payment benefit , your net benefit , and you're going to pay us $477.70 for the next 12 months .

What in the world , paul ? Let's talk about this for a minute . How often do you see these type things happen ?

So now he passes away and that joint income becomes obviously a single filer income , which potentially could push her into a much higher ember bracket , because that's much greater income now transitioned into a single filer income .

The second thing I want to say is that and this to me is we're seeing this quite a bit and this is something for advisors . According to Wall Street Journal , if a baby boomer spouse becomes a widow , there's a 70% chance that advisor is going to get fired 70% chance they're going somewhere else .

So the first baby boomer retired in 2006 . Most people don't know that . It came out in Time Magazine in 2006 . Had a picture of all the different boomer celebrities like Oliver Stone , tom Hanks . I had a picture of all the different boomer celebrities like Oliver Stone , tom Hanks , and it started that whole wave started .

And now that first baby boomer that retired in 06 is now in their 80s or 84 , 83 , 84 , right . So now they're going to be at some point needing some kind of long-term care . Extended care costs , right . And the very dark word in our world is called self-fund . Self-fund what's that mean ? They don't have long-term care insurance , right ? They don't have that .

So they're going to be basically pulling it out of their assets from .

They retired from their career where they had all these work benefits from a plan benefit and they thought I don't need this money . I've got a pension , I've got other income , I've got Social Security .

I'm just going to defer this all the way out , as long as Uncle Sam will let me , until I start my required minimum distributions , maybe at age 73 or anyone born after 1960 , it's going to be age 75 .

But guess what , when you have a need and that long-term care comes there's a stroke , there's a heart attack , there's cancer , something happens You're pulling that money from one of those self-funded accounts . And guess what ? In the Ozarks where I'm at , paul I don't know about where you're at it's $100,000 a year for round-the-clock care .

If it's nonstop , 24-7 , it's $120,000 . But if you're just in standard carry , it's about $98,000 to $100,000 a year . Pull $100,000 a year out of an IRA and combine that to your pension payments and combine that to your Social Security payments and you have a massive IRMA problem .

In six years , that's the equivalent of the United States population . How many long-term care beds do we have in this country ? We have less than 1.2 million beds 75 million retirees 65 or older , 1.2 million long-term care beds .

By the way , as far as long-term care facilities , we have less than 31,000 in this country , and 18% of those facilities only have a memory care unit .

Long-term care is going to be a massive problem . That's why Tom Hegna says you have got to have a solution and a plan for long-term care . If not , it's going to wipe out your assets . And how is it going to wipe them out ? Well , part of it's this IRMA problem .

So , paul , if you will just spend a minute or two quickly on some of the situations that are causing the normal average retiree , who normally wouldn't fall into an IRMA problem , what are situations that are causing them to fall into IRMA ?

Well , I have my modified adjusted gross income and then , oh , by the way , now I got to take this income over 10 years . It's called a modified adjusted gross income multiplier and this is going to be a tidal wave . A tidal wave of these non-spousal inherited IRAs . Guess what Irma's ?

If your radar is going up right now , maybe you got an irma letter or you've heard people talking about it . Your advisor , your financial professional , has never talked to you about income related monthly adjustment amounts and you're 63 or older , or I would say if you're above the age of 60 , you need to start having a plan for this . Call us .

We are Irma specialists , income related monthly adjustment amounts , certified professionals . Our number is 866-780-SAFE . That's 866-780-7233 . And there's someone standing by right now to take your call . This is Brad Pistole , your host of Safe Money Radio . I'll be right back after this informative message .

What will happen to your plan at work if the market crashes ? Call Brad Pistole now for retirement planning that will protect what you've worked so hard for and create a retirement that is safe and secure . Call 866-780-SAFE . That's 866-780-7233 . Now back to more Safe Money Radio with your host , brad Pistol .

I want to talk about an example of something that happened Friday , because this is real life Three innocent people , three children , three beneficiaries , who called our office . They don't know us from Adam , but they were listed on their father's beneficiary form for his traditional IRA . Now these kids come from two different states Missouri and Texas .

Their father passed away . They called us . They said hey , we're all in town . I know you don't know this , but dad died . We've got death certificates . Can we come , please come to your office and talk to you , because we see that we're beneficiaries on dad's IRA ? Sure , we set up a meeting in our conference room . They come in .

You have one business owner in Texas , high income individual , not a lot of assets , but a lot of income . Then you have two other siblings and when they say , okay , well , we can just receive this and then just put it aside , right , because we don't need it . We've got plenty of income , we don't need it . No , you can't do that . Secure Act 2.0 .

Everything changed . You're a non-spousal beneficiary , just like Paul said in the last segment that is called an inherited IRA as a non-spouse , what does that mean ? You got to take all the money out in the first year . You could take out basically a 10th of it for 10 years , but it all must be liquidated by the end of the 10th year .

Or you could you could in some circumstances defer it all the way to the 10th year . But then you have a massive rip the bandaid off problem again , where it's all coming out at once on top of your earned income , which will create an IRMA problem and a taxation problem .

But not to get into the weeds , it depends on if the owner of the IRA died after their RBD , the required beginning date , or before . That's going to dictate how you take the money . But for a non-spousal beneficiary , you're going to have required minimum distributions every year . You've got to take money out .

So you take it all out at once , causing a massive tax problem . You take out a little bit of a time or you can wait in some circumstances . But here's the thing you had three people that did not need the money sitting there saying oh my gosh , this is going to completely affect my tax bracket . This is going to push me over into the next limit .

This is going to affect my FAFSA for my son , who's a senior in high school , like all these different formulas that all involve taxes and scholarships and IRMA surcharges and Fed tax and state tax . So what Paul's talking about very , very , very true . Let's talk about this . Let's say you're someone who has saved your money your entire life .

You're not wealthy , maybe you have a pension and you're living on Social Security Same thing for your spouse and you've just been deferring your IRA . Do you have any idea what your required minimum distributions are going to be at age 73 or 75 ?

You have any idea how much of an impact that's going to be on your Social Security , income taxation and on your IRMA ? What happens when one of you dies ? And what Paul says ? Uh , you go back to a single filer . So , Paul , what's the difference in the Irma bracket for a married couple and a single couple ? Let's talk about that .

If I'm single , if I filed single , the $665 a month is going to come out just out of his Social Security check , his or hers . If it's a couple , now it's coming out of his primary benefit and it's coming out of her spousal benefit . What's scary is that spousal benefits going to be gone a lot quicker than the primary , than the pride .

Then then it , then it's the husband's primary benefit , right ? Or the , or the , or the wife's primary benefit , whatever the situation is yeah , very , very true .

your retirement planning and you're thinking , hey , I'm okay , I don't have a pension , I live off my social security , all my bills are paid off , I'm probably not going to have a problem , unless you sell a property that's not your primary mortgage , primary property .

That's all going to be taxable income to you , unless a family member dies and leaves you an inheritance and maybe it's tax deferred money , unless all these other things happen that can totally and completely affect you , like turning required minimum distribution age and taking out distributions .

You know I met with clients a couple of weeks ago and just doing a projection on their RMD for the future , because they are higher income earners . But it's over $100,000 for their required minimum distributions and right now , in their early 60s , they're not thinking about IRMA .

They're going to have a massive problem when they turn 70 , and that money compounds inside that tax-deferred account for the next 10 years and they didn't do anything to put anything in place . No Roth conversions , nothing . They're going to have a major problem on down the road .

So if you think about it for a minute , you know how do I say this . It's interesting . What's scary to me is that we're living in a depopulating economy . Demographics are against us . If you look at Americans 65 or older right now that are employed in this country , that's increased by 33% from 2015 to 2024 .

If you look at employees that are age 16 years old or older , that's only increased by 9% from 2015 to 2024 . We have 3 million more workers now age 65 or older in the last 10 years . There are like companies out there right now that are specifically wanting or recruiting someone who's 65 or older . You know to do a particular position .

When I go to McDonald's , when I go to the grocery store , you know , every week , weekend , what do I see ? I see retirees working .

Right right and that's for several reasons , go , you'll go ahead yeah , no , I just the thing that I'm seeing right now is that you know , when you look at like an ssa 44 form and you're trying to appeal this , right , the most common uh , the most common life-changing event is a work stoppage , right ?

So when you go under the form , you put , okay , this is what my current MAGI income is going to be or this is what my anticipated MAGI income be . So basically , you're telling the IRS or the government basically that your income will be reduced for the rest of your retirement .

So when you take an R&D , you take dividend income , non-spousal inherited IRA income . If you got rental properties , pensions , social security income , you sell a business , you sell your house .

I mean , you know , if you're in , you're most likely when you need the money the most for long-term care , extended care , like we talked about that income you're going to you're most likely your withdrawal rate is going to go up and you're going to need more income to offset some of these , these healthcare or long-term care expenses .

So technically , I know you're appealing it now , but you know you won't be able to appeal it , unfortunately , later on in retirement .

I will tell you the truth , and the truth is going to impact things in your life , so you better be prepared for this . As United States citizens , we are the largest group of 100 plus year old centurions . Our birth rate is also extremely low . We're not having children anymore at the rate we used to .

So , as Paul was saying , the workers aren't coming into the system to replace the money that's coming back out of social security and Medicare for the need of all the baby boomers and the people who are retiring , and they're living beyond a hundred . So you can do the math of what's coming down the road .

Workers aren't coming in , they're not paying into the system . Massive amounts are coming back out and when they don't have long-term care in place .

If you don't have long-term care in place , let me tell you something there is a 98% chance you're going to take that money that you've saved because you self-funded from a tax deferred location , which means you're going to have tax problems in retirement .

So if you don't have any long-term care in place , you don't have it wrapped up inside an annuity or a life insurance policy or a traditional long-term care plan , and you're like , oh no , I've got the money saved . If I ever need it , I'll take it .

You better have a plan for the tax problem that's going to come with it , because if it does not come out of a Roth or if it doesn't come out of a non-qualified cash account , it's going to affect everything else . It's going to shake down .

Everyone's going to be reaching out to get their hands on the tax From Social Security , from Medicare , from IRMA , from the feds , from the state . It's going to be a problem , which means you're going to have to have higher distributions come out of the account , which means higher taxes . Friends , we're here to help with this . Stick with us .

For the last session , our number is 866-780-SAFE , that's 866-780-7233 . This is Brad Pistole , your host of Safe Money Radio . I'll be right back after this informative message .

Think about it 33 cents of every dollar you've saved will be lost before you even enter into retirement . And it doesn't end there . That same 2% fee can cost you another 33% while you're in your retirement . So ask yourself just whose retirement am I saving for ? Stop financing someone else's . Pick up the phone and call us now at 866-780-SAFE . That's 866-780-7233 .

You're listening to Safe Money Radio with your host , brad Pistole .

Friends , as we wrap up the show today , I just want to thank Paul Morrison , a specialist one of the nation's leading income related monthly adjustment amount surcharge specialist . And , Paul , I know you guys have developed some incredible software that financial professionals can use . You have an Irma client stress test . Tell us about this .

Let's talk about this as we close the show today .

You know , whether you're on LinkedIn , whether in social media , whether in comments , you know everyone says , well , irma is not going to be a big deal to me and I don't see this really impacting my situation in retirement .

You know , one of the reasons why we created the software is kind of you know the proof is in the pudding and you know we have accurately forecasted and we've actually showed the historical Medicare Part B and D base rates .

So we actually show what the numbers are from the Medicare Board of Trustees and the Congressional Budget Office , the federal government , and then also we have taken what the EIRMA surcharges on average have inflated since 2007 . But we also show how your benefit's going to be taxed . Is it going to be taxed up to 50% ? 85% ? We don't talk about that .

That's another tax in retirement that's not very rarely discussed . And so what we do is we create this report . We also show what your annual target income is going to be if you adjust it for inflation . Are you underfunded on your target income or are you overfunded ?

Okay , and what we allows us to do is show okay , this is what your total Medicare costs are going to be in retirement . Okay , and , by the way , this is what this is what our ERMA bracket you're going to be in at these certain ages . And I got to say , brad , when someone takes that RMD at 72 , bam , they go right up to the next bracket .

I see it all the time . 72 is a really key age because that really changes everything as far as that social security net benefit decreasing a little more rapidly because they're taking that RMDs and those RMDs are increasing every year . And then we have , like a second scenario . The second report is okay , let's figure out this problem .

Let's look at a Roth conversion , full , partial life insurance . You know whole life , index universal . We know if it's positioned correctly . I mean , I know there's a lot of , you know , talk about index universal lives out there . It's got to be positioned correctly . But we show solutions .

You know a reverse mortgage in some cases , you know , depending on the situation . But you know , here's your second scenario . These are how many Medicare costs you saved from age 67 to 90 . In addition to , we eliminated Irma . So look at your social security and guess what ?

You don't have to now start withdrawing eight to 10 percent , you know , when you are in your mid 70s and early 80s because Irma is getting worse for your situation . So you know , it's a very I want to say unique and invaluable report and it gets a lot of people's attention once they see it fantastic .

You simply must have a plan for irma in the future . It's not going away . You simply must have a plan for long-term care . It is a part of a healthy retirement income plan for your retirement . If you're thinking , oh well , no , I've got stocks , bonds , mutual funds and a real savvy investment guy and so I'm good , I'm good .

Has he ever talked to you about taxes at all , ever ? Has he ever talked to you about required minimum distributions and how it's going to impact you ? Has he ever talked to you about what happens if one of the two of you end up on long-term care because you don't have any long-term care in place ? Has he talked to you about any of that ?

Well , most of the time , no . Most investment people are specialists regarding making you money . It's in the accumulation side of things . They're not decumulation specialists how to get the money back out in the most tax efficient way , which is what I've spent my entire career helping people plan for .

It does not matter who's ahead at halftime Paul , all of you listening it doesn't matter , it's who wins the game at the end the fourth quarter in overtime , right ? So yeah , I just want to .

I want to say this a few options that you have right now as you're doing Irma planning , possibly doing some Roth conversions , like Paul said , to get rid of some taxes now so that in the future , five years later or after age 59 and a half , you can take the money back out completely tax-free .

You have some options when it comes to long-term care planning a traditional long-term care policy that can be written by a financial professional , possible life insurance and or annuities that have special long-term care riders attached to them .

If you're a person who says I don't want to pay for long-term care , if I use that and pay those premiums and never use it , I threw it down the toilet . I agree that's not fun .

So you can fund life insurance policies and specific types of annuities that have long-term care type benefits wrapped up inside it If you can't perform two out of six ADLs activities of daily living walking , dressing , toileting , all these different things that are there then it will allow for sometimes double payments .

If you're married , filing jointly one and a half times , there are benefits that are there . Remember , the only other option is self-funding , putting it aside and not putting it into anything else . And if you ever do have to take the need out and it's from a taxable account , it's going to affect everything else .

So , paul , thank you so much for joining us again . It's the time just flies by . Every time you're on we run out of time and everyone's always like , hey , you got to have Paul back on again . I know one of your co-founders with this program , mark , is going to be on the program here in a few weeks .

So , if you're listening , we're going to be doing more of this to talk more about how you can prepare for the future . But , paul , thank you so much for joining us today .

I'll give you a copy of my bestselling book Bulletproof the safe and secure retirement income plan . That has helped people with these issues all across the country . 866-780-7233 . Just call us anytime . There's always someone standing by to take your call . Well , I'm about out of time and I would like to thank you for listening to Safe Money Radio .

If you're serious about your financial future , give me a call and together we'll get your retirement savings on the fast track to accumulation while reducing exposure to market losses . Thanks for listening and until next time . At the same time , I'm Brad Pistole , reminding you to stay safe so you can step into a secure future .

So you can step into a secure future . Safe Money Radio your money savings now .

Guarantees are based on the financial strength and claims-paying ability of the insurance company . No information presented today should be acted upon without meeting with a qualified and licensed professional . Obviously , by calling us now , you are just taking the first step towards protecting your retirement .

It's important that you read all insurance contract disclosures carefully before making a purchase decision . Rates and returns mentioned on this program are subject to change without notice .