Category Archives: Uncategorized

Medicare Scam centers on new cards

Fox News is reporting that, while all seniors will get new Medicare Cards this year, scammers are trying to get you to give you your new 11 digit number, along with other personal information.

A reminder that you should NEVER give this information to someone you do not know.  Also, there is no fee for this new card.

The full article is here.

New Exemptions to ObamaCare Released

“The Trump administration announced Monday that those who live in counties with no insurer or with only one choice will be able to apply for a hardship exemption from the mandate, which requires nearly all Americans to get health insurance or pay a penalty.” according to an article in CNN Money.

This means that 26% of Americans will be able to file for a hardship waiver, including everyone in the State of South Carolina, but only matters for the rest of this year.  The penalties for not having insurance are eliminated in 2019.

Budget Deal helps Seniors with RX costs

From Bloomberg, 4/6/18.  Click here for full article

Deep in a budget deal Congress passed earlier this year — just 118 words in Section 53116, a little before passages on prison reporting data and payment yields for seed cotton — was a hit to pharmaceutical companies that will cost them billions, and could signal more losses to come.

Despite an intense lobbying push, lawmakers changed a Medicare rule, putting manufacturers on the hook for more of seniors’ prescription costs. The companies will have to offer a much more generous discount to beneficiaries who fall into the so-called donut hole coverage gap, marking down retail costs by 70 percent instead of the current 50 percent.

It was a rare defeat for some of the biggest spenders in the political influence game and raised new questions about how they’ll fare in upcoming battles. Lawmakers have introduced bills that would squeeze the industry, and President Donald Trump has said he will roll out proposals this month to curb drug prices.

Wondering why your hospital and doctor dissappearance

Interesting article in Bloomberg today about how Hospitals are buying all of the doctors practices up, and directing care.  While this is not a new phenomenon in some areas (like New York City, LA and Seattle) it is going to limit choices, as your health plan directs you to the hospital and doctors they want you to use….

For now, UnitedHealth remains the colossus astride it all. The insurance giant has spent the past decade steadily adding physicians to its ranks, fortifying itself against competing insurers as well as hospitals who are buying up physicians. Once the physician groups it bought from DaVita Inc. are fully under its wing later this year, UnitedHealth’s OptumCare unit will have one of the largest collections of doctors in the U.S.”

Changes in your 401k plan in 2019- Hardship Rules

A number of 401k plan changes were included in the Bipartisan Budget Act, specifically around Hardship with drawals and repaying plan loans:


Hardship Withdrawals:  Currenlty, employees seeking to take money out of their 401(k) accounts are limited to the funds they contributed themselves.  They must first take a loan from the same account, which has to be repaid.

Due to the Bipartisan Budget Act, the rules will change in 2019. Employees’ withdrawal limit will include not just amounts they have contributed, but also employer matching contributions plus earnings on contributions. If someone has been participating in the 401(k) for several years, this could add substantially to the amount of funds available in the event of a legitimate hardship.

Employees will be able to stay in the plan and continue to contribute starting in 2019, currently they are banned for 6 months after the Hardship Withdrawal.  Plan sponsors won’t be required to unenroll and then re-enroll employees after that six-month hiatus.

One thing that hasn’t changed: Hardship withdrawals are subject to income tax, plus a 10 percent tax penalty. That could take a substantial bite out of the amount withdrawn, effectively forcing account holders to take out more dollars than they otherwise would have.

Hardship criteria

There has been no change to the criteria for a hardship withdrawal:

Such a withdrawal “must be made because of an immediate and heavy financial need of the employee and the amount must be necessary to satisfy the financial need.” That can include the need of an employee’s spouse or dependent, as well as that of a nonspouse, nondependent beneficiary.

The IRS goes on to say that the meaning of “immediate and heavy” depends on the situation. It also assumes the employee doesn’t have any other way to meet the needs. The following are examples offered by the IRS:

• Qualified medical expenses (which presumably don’t include cosmetic surgery)

• Costs relating to the purchase of a principal residence

• Tuition and related educational expenses

• Payments necessary to prevent eviction from, or foreclosure on, a principal residence

• Burial or funeral expenses

• Certain expenses for the repair of damage to a principal residence

Repaying Plan Loans as an ex-employee

Prior to 2018, if an employee with an outstanding plan loan left their employer, he or she would have to repay the loan within 60 days to avoid having it deemed as a taxable distribution (and subject to a 10 percent premature distribution penalty for employees under age 59-1/2).

The TCJA changed that deadline to the latest date the former employee can file his or her tax return for the tax year in which the loan amount would otherwise be treated as a plan distribution. So, for example, if someone with an outstanding loan of $5,000 changed jobs on Dec. 31, 2017, he or she would have until April 15 (or, with a six-month filing extension, Oct. 15), 2018, to repay the loan.

Alternatively, he or she could make a contribution of the same amount owed ($5,000, in this example) to an IRA or their new employer’s plan, assuming the new plan permitted it. That $5,000 contribution would be treated the same as a rollover from the old plan.

As always, please consult your tax adviser should you have any questions.

May 2018
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Reeve Conover is a Registered Representative. Securities offered through Cambridge Investment Research, Inc., a Broker/dealer member FINRA/SPIC. Cambridge and Conover Consulting are not affiliated. Licensed in SC, NC, NY, CT, NJ, and CA. - SIPC - Brokercheck