When You Turn 65, Avoid These 5 Mistakes

You should begin considering your Medicare options and which ones are best for you well in advance of the age of 65. You may incur significant costs if you don't do it and enroll in Medicare after the deadline.

Waiting too long to file for Medicare

You will be penalized if you don't enroll in Medicare Part A (hospital insurance), Part B (doctor and outpatient insurance), or Part D (prescription drug insurance) in a timely manner. The punishment may endure the remainder of your life in some circumstances.

Waiting too long to file for Medicare

It could feel normal to keep making contributions at age 65 and beyond if you have been doing so for a long time. That would be a grave error for millions of people, though.

Maintaining HSA contributions

You are not allowed by law to make additional contributions to an HSA after enrolling in Medicare. If you break this rule, you can have to pay more taxes and face penalties.

Maintaining HSA contributions

The age at which you are entitled to 100% of your Social Security pension is known as full retirement age. The notion that you have achieved "full retirement age" and can receive a greater Social Security income once you hit 65 seems to be a persistent one. But it's not true.

Full retirement age Social Security Advantages

If you were born during 1943 and 1954, the retirement age for you is 66. The full age to retire steadily increases for those born between 1955 and 1960, reaching 67 for those born after 1960.

Full retirement age Social Security Advantages

Most people probably aren't aware that the standard deduction amount increases the year a person turns 65 on their tax return.

Forgetting that you qualify for a larger standard deduction

Taxpayers 65 and older will receive an increase to their standard deduction of $1,500 for married filers and $1,850 for single filers for the 2023 tax year. You must have been born before January 2, 1959 in order to be eligible for 2023.

Forgetting that you qualify for a larger standard deduction

Perhaps delaying estate planning when you are younger is OK. However, if you wait until you are 65 to create an estate plan, it would be just irresponsible.

Putting off considering an estate plan

You must create an estate plan if you have any concern for your loved ones or for what will happen to your property when you pass away. Even if all you want to do is leave your estate to charity, you should make sure that the money you have amassed supports causes you agree with.

Putting off considering an estate plan

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