What is the maximum QCD limit for 2026?

The maximum Qualified Charitable Distribution (QCD) limit for 2026 is $105,000. This amount is indexed for inflation and allows individuals aged 70½ and older to donate directly from their IRA to eligible charities, tax-free.

How do QCDs impact my Medicare premiums?

QCDs can significantly impact your Medicare premiums by reducing your Adjusted Gross Income (AGI). A lower AGI can help you avoid or reduce the Income-Related Monthly Adjustment Amount (IRMAA), which is an additional premium charged to higher-income beneficiaries for Medicare Part B and Part D.

What are the key Medicare changes for 2026?

Key Medicare changes for 2026 include updated premiums, deductibles, and coinsurance amounts for Part A, Part B, and Part D. Income thresholds for the Income-Related Monthly Adjustment Amount (IRMAA) will also be adjusted. It's crucial to review these changes during the Annual Enrollment Period to optimize your coverage.

How much should I budget for home repairs in retirement?

Financial experts generally recommend budgeting 1% to 4% of your home's value annually for maintenance and repairs. For a $300,000 home, this would be $3,000 to $12,000 per year. This dedicated fund helps cover both routine maintenance and unexpected major repairs without depleting retirement savings.

Can I use my IRA to pay for home repairs?

While you can take distributions from your traditional IRA to pay for home repairs, these distributions are typically taxable as ordinary income. This can increase your Adjusted Gross Income (AGI) and potentially impact your Medicare premiums. It's generally more tax-efficient to use dedicated savings, a HELOC, or funds from taxable brokerage accounts for home repairs.

When is the best time to review my Medicare plan options?

The best time to review your Medicare plan options is during the Annual Enrollment Period (AEP), which typically runs from October 15 to December 7 each year. This period allows you to make changes to your Medicare Advantage or Part D plans for the upcoming year.

Are there any new tax benefits for retirees in 2026?

The primary tax benefit for charitably inclined retirees in 2026 remains the Qualified Charitable Distribution (QCD) limit of $105,000. While no major new tax benefits specifically for retirees have been announced for 2026, it's always wise to consult a tax advisor for personalized updates and strategies.

Retirement Planning 2026: IRA, Medicare, Home Repair | One…