ChatGPT Image Nov 19, 2025, 07_26_16 PM

What Women Can Do About Rising Medicare Costs & a Small 2026 COLA

If you’ve seen the newly released 2026 Medicare numbers, you might be feeling a little frustrated. Part B premiums are jumping. Part D is climbing. And Social Security’s cost-of-living adjustment (COLA) is only 2.8%.

Most people think they’re powerless when Medicare costs rise faster than their benefits. But here’s the truth:

You are not powerless.
In fact, there are very real financial levers women (and couples) can pull right now, before 2026 shows up on the doorstep.

Let’s break them down clearly, simply, and in plain English.


1️⃣ Manage Income—Not Just Expenses (IRMAA Planning)

IRMAA (Income-Related Monthly Adjustment Amount) is the extra surcharge high-income retirees pay on Medicare Parts B and D. It’s based on your MAGI from two years prior, which means:

Your 2024 income determines your 2026 IRMAA charges.

There is still time to influence this.

Ways to keep Medicare-related income lower:

  • Shift income into tax-free buckets (Roth conversions—but sized correctly)

  • Reduce capital gains during key years

  • Delay big IRA withdrawals

  • Be strategic with RMD timing once required

  • Use Qualified Charitable Distributions (QCDs) at 70½ for charitable giving

  • Avoid unplanned income spikes (like selling property without a strategy)

This one step alone can save hundreds to thousands of dollars per year.


2️⃣ Build a Buffer Into Your Retirement Budget

Most retirees underestimate how fast medical costs rise. If premiums keep climbing while COLA lags behind, your budget must reflect that.

Practical steps:

  • Add a medical inflation line item of 5–6% annually

  • Revisit your retirement spending plan every year

  • Treat healthcare as a core non-negotiable expense, not a variable one

A 2.8% COLA simply won’t cover the reality of 2026. Planning for the gap is essential.


3️⃣ Keep Taxable Income Smooth—Not Spiky

Medicare doesn’t care about your average income.
It penalizes sudden spikes.

Women can help themselves by:

  • Spreading out IRA withdrawals

  • Avoiding one-time bursts of income

  • Using multi-year Roth conversion ladders

  • Coordinating Social Security and pension timing

Smoother income = fewer IRMAA surcharges.


4️⃣ Get Smart With Part D (Most People Don’t)

Part D premiums and IRMAA are both rising, but the good news is:
Part D is one of the easiest places to save money.

Each year:

  • Re-shop your Part D plan

  • Use Medicare’s official plan finder tool

  • Choose a plan based on current medications—not the one you picked five years ago

  • Look into Extra Help if you qualify

  • Use preferred pharmacies or mail-order options

Many people save hundreds per year simply by reviewing their plan annually.


5️⃣ Do Tax Planning Before Retirement, Not After

One of the biggest Medicare cost drivers?
Large pre-tax retirement balances.

Here’s what proactive planning looks like:

  • Roth conversions in your 50s and early 60s

  • Maxing out HSAs (if eligible)

  • Building brokerage accounts for flexible withdrawals

  • Using Roth 401(k) options when it makes sense

You can pay a little tax now—or pay a lot more later through higher Medicare premiums.
Planning early gives you options.


6️⃣ Appeal IRMAA if You Qualify

Most retirees don’t know this:

IRMAA is not permanent.

You can appeal using Form SSA-44 if you’ve had a qualifying “life-changing event,” such as:

  • Retirement

  • Marriage or divorce

  • Loss of income

  • Loss of pension

  • Work reduction

If your income drops significantly, you may be able to reduce—or completely eliminate—your IRMAA for that year.

To learn more about IRMAA and get step-by-step IRMAA appeal directions, check out our IRMAA webinar at: www.IRMAAWebinar.com and our resources at: www.NoIRMAAforMe.com.


7️⃣ Work With Someone Who Understands Medicare + Taxes

This goes beyond investments. This is strategic retirement planning that mixes Medicare rules, tax timing, Social Security, and income management.

Most people save money simply by working with someone who knows how these pieces interact. This isn’t investment advice, it’s retirement math and smart tax planning.

If you’d like to connect with a Medicare, tax, IRMAA, or Social Security expert, email Lynn at: lynnt@herretirement.com. We have a great company that helps you chooose the BEST Medicare options for you.


Final Thought: You’re Not At the Mercy of Rising Costs

Every year, I see women feel blindsided by Medicare increases. But many women can prepare. Many can smooth out income. Many can avoid unnecessary surcharges.

The sooner you understand the levers you can pull, the more control you regain.

Your Medicare costs don’t have to control your retirement, you can control your strategy.

To learn more about Medicare, check out my Medicare e-classe and resources at: www.MedicareforHer.com

To learn more about Social Security, check out my Social Security e-classe and resources at: www.HerSocialSecurity.com

And, we highly encourage you to learn more about the More for Her Collective offered by Her Retirement at: Her Retirement Collective – Her Retirement

ChatGPT Image Jul 13, 2025, 03_25_36 PM

The Big Beautiful Bill (2025): Unbiased Overview

On July 4, 2025, former President Trump signed the One Big Beautiful Bill (OBBBA) into law—an 870+ page tax and spending package with major implications for American households, businesses, retirees, and investors.

This bill:

  • Extends and expands many of the 2017 tax cuts that were set to expire

  • Adds new tax breaks for seniors, families, and workers

  • Introduces new savings vehicles like Trump Accounts

  • Cuts funding for several social programs to offset cost

  • Adds $2.4–$3.4 trillion to the national debt over 10 years

If that sounds like a lot to digest—it is. But you don’t need to read all 900 pages. Here’s your plain-English breakdown of the key provisions, who benefits, what critics are saying, and when everything goes into effect.


1. Tax Cuts Extended & Expanded

  • Permanent Extension of 2017 TCJA
    Individual income tax rate reductions and the 20% deduction for pass-through businesses (Section 199A) are made permanent. 
    Sources: time.com, en.wikipedia.org, rsmus.com

  • Note: The original Trump-era tax cuts passed in 2017 were set to expire after 2025 for individuals and small businesses. Without congressional action, this would have likely resulted in significantly higher taxes for many households starting in 2026. The 2025 bill prevents that expiration and locks in those provisions going forward.
  • Child Tax Credit Increased
    Raised from $2,000 to $2,200 per child, with additional temporary enhancements for lower-income families phased in through 2028.
    Sources: apnews.com, sfchronicle.com, bipartisanpolicy.org

  • New Targeted Deductions Introduced

    • Tax-free status for overtime and tipped income, up to annual limits.

    • Full expensing of certain domestic business investments.
      Sources: time.com, en.wikipedia.org, apnews.com

  • Standard Deduction Adjustments

    • Additional $1,000 for individuals and $2,000 for married couples (2025–2028).

    • Ongoing inflation indexing made permanent.
      Sources: kiplinger.com, bipartisanpolicy.org

  • Senior-Specific Deductions

    •  Seniors aged 65+ now receive a dedicated $6,000 standard deduction increase
      (not $4,000 as some earlier proposals suggested).
      • This is in addition to the regular standard deduction for all taxpayers.

      • The $6,000 benefit:

        • Applies whether or not you’re collecting Social Security

        • Applies whether or not you itemize

      • It is designed to help fixed-income seniors keep more of their retirement income, Social Security, and savings.

    • Phases out above $75,000 in income for individuals and $150,000 for married couples filing jointly.
      Sources: bipartisanpolicy.org


2. Cuts to Health, Benefits & Safety Net Programs

To offset the tax cuts, the bill includes major reductions in federal spending:

  • Medicaid & SNAP Cuts

    • Slower growth caps on Medicaid.

    • Tighter eligibility and reduced SNAP (food stamps) allocations.
      Sources: theguardian.com, apnews.com, thetimes.co.uk

  • Work Requirements & Co-pays

    • Federal assistance programs like Medicaid and housing aid now include work or volunteer requirements (20 hours/week in many cases).

    • Some Medicaid recipients face new co-pays for services.
      Source: apnews.com


3. Border & Defense Funding Increases

  • Over $350 billion allocated to defense, border security, and immigration enforcement over 10 years.

  • Expands ICE funding and builds on existing infrastructure.
    Sources: reuters.com, vanityfair.com, apnews.com


4. Deficit & Debt Impact

  • The Congressional Budget Office (CBO) and independent analysts estimate the bill will add between $2.4 and $3.4 trillion to the national debt over 10 years.
    Sources: reuters.com, en.wikipedia.org

  • Supporters argue that the bill will boost GDP by ~1.1% over a decade, citing increased consumer spending and investment.
    Critics counter that long-term debt pressures could lead to higher interest rates or future spending cuts.


When the Provisions Begin

According to USA TODAY’s July 2025 breakdown, provisions phase in over several years:

ProvisionStartEnd
Tax-free overtime & tipsJan 1, 2025Dec 31, 2029
$6,000 Senior DeductionJan 1, 2025Permanent
Trump AccountsJan 1, 2026Dec 31, 2029
Auto Loan Interest DeductionJan 1, 2026Dec 31, 2029
Boosted Standard DeductionJan 1, 2025Dec 31, 2028
Expanded Child Tax CreditJan 1, 2025Dec 31, 2028
529 ExpansionJan 1, 2025No expiration
SALT Deduction Cap ($10,000)ImmediateStill in place

What This Means for Women & Retirees

If you’re:

  • Working hourly or part-time → You’ll pay no federal tax on tips or overtime.

  • A senior on a fixed income → You’ll benefit immediately from the new $6,000 deduction (if you meet the income requirements)

  • Caring for children or grandchildren → You get more back via the child tax credit and expanded 529 flexibility.

  • Saving for your future → Trump Accounts and deductible auto loan interest could give you new savings advantages—if you act in time.

Critics vs. Supporters

Supporters SayCritics Say
Increases take-home payFavors the wealthy
Rewards working AmericansCuts essential services
Makes tax cuts permanentExplodes the deficit
Simplifies savings & investingTemporary benefits for most households

Final Thoughts: What Should You Do?

Even if you’re not political, this bill affects your:

  • Taxes

  • Health coverage

  • Retirement planning

  • Day-to-day cash flow

Here’s what we recommend:
✅ Review your 2025 tax withholding
✅ Talk to a tax advisor about timing deductions
✅ Update your retirement strategy to factor in these changes
✅ Explore new savings vehicles like Trump Accounts and 529s
✅ Be aware of benefit eligibility changes if you or a family member relies on Medicaid or SNAP

If you’re feeling overwhelmed, you’re not alone. Her Retirement is here to help you navigate this new landscape—with smart strategies, planning tools, and a supportive community. Learn more inside the Her Retirement Collective.

Should you have any questions about how the bill impacts your money and your retirement, reach out to us and we’ll connect you with a vetted expert in our network: retire@herretirement.com

No taxes

Surprising Tax Stats: How to Save Big by Choosing the Right State

So, what are the lowest income tax states? Let’s start with the nine states that don’t have state earned income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. But don’t be misled—no state is truly tax-free. Many of these states make up for it with higher property taxes, sales taxes, or other fees.

If you’re a high-income earner, these tax savings can be significant. For example, if you earn $250,000 a year, moving from Vermont—where you could be paying over $15,400 in state income taxes—to a state like New Hampshire with a 0% tax rate on earned income (excluding dividends and interest) could save you a big chunk of money. If you invest that savings annually with a 7% return, it could grow to over $213,000 in just 10 years!

Similarly, if you’re earning $100,000 and move from a high-tax state like Oregon to a no-income-tax state like Florida or Texas, you could save about $7,200 a year. But, be careful—a move from Nevada, which has no state income tax, to Utah, where taxes are higher, could cost you an extra $4,000 annually.

Source: Fidelity
Charts assume income of $100,000. All income is assumed to be ordinary income subject to income taxation. A FICA tax rate of 7.65%, federal income brackets and state income taxbrackets are used. We assume that state adjusted gross income (AGI) is the same as the federal AGI and that the only deduction that applies is federal standard deduction based on filing status. We assume further that the additional federal standard deduction for age is included, and no credits are claimed. All data is as of 2023. Tax law may have changed between 2023 and the publishing date of the article. The combined FICA, effective state and federal income tax rates for a single filer earning $100,000 of income vary from a high of 29.16% in Oregon to a low of 22.72% in North Dakota. For a married couple filing jointly with the same income, the combined effective state and federal income tax rates range from a high of 21.64% in Oregon to a low of 15.89% in North Dakota. Assuming $100,000 in annual earned income, the lowest-tax states offer a combined effective tax rate of 21.91% for single filers and 15.89% for married people filing.

Among states with income taxes, top marginal rates range from a high of 9.3% in California to a low of 1.95% in North Dakota for someone earning $100,000. But rather than focusing on top rates, it’s smarter to look at your effective combined state and federal tax rate—this is the percentage of your income that actually goes to taxes after deductions and credits.

Your marital status can also impact your tax rate. For example, Oregon has the highest effective tax rates for both single and married joint filers, while North Dakota offers some of the lowest. Surprisingly, California, despite its reputation for high taxes, can be a good option for married couples, with a competitive effective rate for joint filers.

If saving on taxes is your goal, Florida and Texas are strong contenders, even with their rising costs of living. North Dakota and Ohio are also tax-friendly options. And if you’re married and don’t mind paying some state income tax, California or even New Jersey might be worth considering.

But here’s something you might not expect based on those same income parameters:

  • While the Northeast is known for high taxes, Oregon actually tops the list with the highest effective tax rates for both single and married joint filers. Hawaii isn’t far behind, with top rates of 28.27% for single filers and 20.44% for married filers.
  • Minnesota, Maine, and Montana also make the top 10 list for the highest income tax rates for both single and married filers.
  • California, despite being one of the most expensive states for single filers with an effective tax rate of 26.58%, ranks among the 20 best states for married couples filing jointly, with a rate of 17.58%.
  • New Jersey and Rhode Island are among the states with the lowest effective tax rates for married filers.
  • West Virginia lands in the middle for effective tax rates for both married couples filing jointly and single filers.

Source: Fidelity
Charts assume income of $100,000. All income is assumed to be ordinary income subject to income taxation. A FICA tax rate of 7.65%, federal income brackets and state income taxbrackets are used. We assume that state adjusted gross income (AGI) is the same as the federal AGI and that the only deduction that applies is federal standard deduction based on filing status. We assume further that the additional federal standard deduction for age is included, and no credits are claimed. All data is as of 2023. Tax law may have changed between 2023 and the publishing date of the article.

The bottom line is this: If you’re looking to keep more of what you earn, understanding these nuances can make a big difference. But remember, everyone’s tax situation is unique, so it’s always a good idea to consult with a financial or tax professional to figure out what’s best for you. And if you’d like to connect with retirement tax specialists, check out: www.TaxSmartRetiree.com. 

 

What Can Wealthy Boomers Do to Stay Wealthy?

One of the most valuable things wealthy boomers can do to protect their wealth is tax planning. Here’s some tax planning strategies to consider in your financial plan:

  • Roth Conversions: Convert traditional IRAs or 401(k)s into Roth IRAs over time. While you’ll pay taxes on the converted amount, Roth IRA withdrawals in retirement are tax-free, which can reduce your future tax burden.
  • Tax-Efficient Withdrawal Strategy: Plan how you’ll withdraw money from various retirement accounts (e.g., traditional IRAs, 401(k)s, taxable accounts). Aim to minimize the tax impact by strategically choosing which accounts to tap into each year.
  • Asset Location: Allocate your investments wisely between taxable and tax-advantaged accounts. For example, place tax-inefficient investments (like bonds) in tax-advantaged accounts and tax-efficient investments (like stocks) in taxable accounts.
  • Qualified Charitable Distributions (QCDs): If you’re charitably inclined, consider making charitable donations directly from your IRA using QCDs. This can satisfy your Required Minimum Distribution (RMD) and lower your taxable income.
  • Tax-Efficient Investments: Invest in tax-efficient funds or individual stocks that generate lower levels of taxable income, such as index funds and ETFs.
  • Tax-Loss Harvesting: Offset capital gains by selling investments that have declined in value, thus realizing capital losses that can offset gains.
  • Minimize Medicare IRMAA Surcharges: Be aware of how your income affects Medicare premiums. There are some strategies that can help reduce the impact of IRMAA.
  • Estate Planning: Implement effective estate planning strategies, such as gifting assets to heirs over time to take advantage of gift tax exclusions and reduce your taxable estate.
  • 529 Plans: Use 529 college savings plans for education expenses. They offer tax-free growth and withdrawals when used for qualified education expenses.
  • Health Savings Account (HSA): If eligible, contribute to an HSA, which provides a triple tax advantage – tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.
  • Long-Term Care Insurance: Consider long-term care insurance to protect assets from potential long-term care expenses while keeping premiums tax-deductible.
  • Real Estate Strategies: Explore tax-efficient real estate investment options, such as real estate investment trusts (REITs) or like-kind exchanges (1031 exchanges).
  • Use Tax Credits: Take advantage of available tax credits for retirees, such as the Retirement Savings Contributions Credit (Saver’s Credit) or any state-specific tax credits.

If you’d like to chat with a retirement tax planning specialist, reach out to us at: retire@herretirement.com.

7 Common Tax Questions Answered

Often, a single, well-thought-out tax strategy can put you in a position to keep significantly more of your investment earnings. That’s why it’s important to know the tax implications of your investment decisions. In the PDF below, are 7 common questions and answers. Once you have reviewed this document, if you still have more tax related questions, a Her Retirement tax specialist can answer any question you may have as part of our complimentary services.

UnderstandingTaxes QA_PacLife