The Social Security Administration announced that the 2017 cost of living adjustment (COLA) for Social Security will be 0.3%. While this is nothing earth shattering, something is better than last year’s nothing! Regarding Medicare Part B payments, according to an article written by Mary Beth Frankel of Investment News:
“By law, the majority of beneficiaries are protected by a “hold harmless” rule that says their Social Security benefits cannot decrease from one year to the next due to an increase in Medicare Part B premiums. In other words, the increase in their monthly Medicare Part B premiums, which pays for doctors’ visits and outpatient services, cannot exceed the dollar amount increase in their Social Security benefits.”
Also, Social Security taxes will be paid on wages up to $127,200 for 2017 up from $118,500 for 2015 and 2016. As always there remains no wage limit for Medicare taxes withholding. If you have any questions regarding either Social Security or Medicare please do not hesitate to contact us.