Medicare's income-adjusted Part B and Part D premiums could rise significantly in response to even an extra dollar of income for some clients, requiring new retirees to be vigilant about the basis for those calculations, writes Paula Muschler. The Social Security Administration bases the premium, known as the income-related monthly adjustment amount, on the previous year's tax return, but in the case of a new retiree, that amount will reflect full-time rather than retirement income, she writes. Muschler suggests that financial advisers make their clients aware of the situation and about requesting a new Medicare-premium decision from Social Security.

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