Thrive Newsletter Q4 2023
Part D Open Enrollment is Almost Here!
Part D Open Enrollment is Here!
Part D open enrollment is the annual period during that allows those on Medicare Part D to make changes to their prescription drug coverage.
Here are some key points about Part D open enrollment:
- Timing: Part D open enrollment typically occurs every year from October 15th to December 7th. During this period, Medicare beneficiaries can make changes to their Part D prescription drug plans or switch to a different plan.
- Plan Options: During the open enrollment period, you can choose from a variety of private insurance plans that offer prescription drug coverage. These plans vary in terms of the drugs they cover, their cost, and their network of pharmacies.
- Changes Allowed: During Part D open enrollment, you can do the following:
- Enroll in a Part D plan if you didn't have one before.
- Switch from one Part D plan to another.
- Discontinue your Part D coverage if you no longer need it.
- Make other changes to your prescription drug coverage as needed.
- Plan Comparisons: It's important to review your current Part D plan each year during open enrollment to ensure it still meets your needs. We will be in contact with you soon to run a plan comparison.
Remember…Part D open enrollment is a critical time for you to make informed decisions about your prescription drug coverage. It allows you to select the most cost-effective plan that covers the medications you require. If you miss the open enrollment period, you may have to wait until the next year's open enrollment to make changes to your Part D coverage, unless you qualify for a Special Enrollment Period due to certain life events.
Capital gains is an often-misunderstood tax principle that if managed correctly can create big results. Capital gains are the gain in value of an assets such as real estate or stocks and are incurred when you sell the asset. So, for example if I bought a stock outside my IRA account for $100 and I sell if for $200 I have a capital gain of $100.
This capital gain is typically taxable at a rate of 15% but can be as high as 20% depending on your income. What many are not aware of is that if your taxable income (not AGI) including the capital is less than about $84,000 you pay no tax on the gain.
So why is this important? If someone has assets that are highly appreciated, a prudent long term capital gain strategy can help reduce or eliminate capital gains tax paid. We are trained by the financial media to focus on investment returns but the reality is that’s just one component of your planning. Remember you can also win by reducing or eliminating the taxes you pay.