RL-6 (12-12) Annual Rate Newsletter

Railroad Retirement
Information and Reminders
Medicare Information

Tax Information

In 2020, the Medicare Part B premium is $144.60. Some people pay
more than the standard premium because they enrolled late or
because they withdrew from the program and enrolled again later.
Also, Part B premiums are higher in 2020 for individuals with annual
incomes above $87,000, and for married couples with incomes above
$174,000. If you pay the higher Part B premium because of your
income and have prescription drug coverage (Part D), the RRB will
deduct the Part D income related monthly adjustment amount
(IRMAA) from your monthly benefit. If your monthly benefit is not
large enough for the deduction, the RRB will bill you quarterly.

The RRB will mail a tax statement for your 2019 railroad retirement
benefits by January 31, 2020. If you do not receive a statement by
February 15, 2020, contact your nearest RRB office.

The Part B deductible for 2020 is $198.00, up from $185.00 in 2019.
The Medicare Part A deductible in 2020 is $1,408.00, up from
$1,364.00 in 2019. This is the amount you pay for a hospital stay
before Medicare begins to pay.
You can request to have your Medicare Advantage Plan (Part C)
and/or your prescription drug coverage (Part D) premiums deducted
from your monthly payment. Contact your plan to request
withholding.
To find out if you are eligible for a Medicare Savings Program, call
your state medical assistance office. You can get the number for that
office by calling 1-800-MEDICARE (1-800-633-4227) and asking for
information about the Medicare Savings Program.
If you are a Medicare beneficiary with limited income and resources,
you may also be able to get extra help paying for your monthly
premiums, deductibles, and co-payments under the Medicare
prescription drug program. You can go online at
www.ssa.gov and file an application, or call SSA at 1-800-772-1213
(TTY 1-800-325-0778).
Beneficiaries now have the option to pay back a Medicare Part B or
Part D IRMAA arrearage online through the Department of the
Treasury’s Pay.gov system. Payments can be made using

a personal or business checking or savings account;

a debit or credit card payment with MasterCard, Visa, Discover
or American Express; a DWOLLA account; or,

PayPal.
You can access Pay.gov directly at https://www.pay.gov/public/home
or through the RRB website at
https://secure.rrb.gov/onlinebillpayment.asp.

The tax statement issued by the RRB will only show the total Part B,
Part C and/or Part D Medicare premiums that were deducted from
railroad retirement benefits. Medicare premiums deducted from social
security benefits paid by the RRB, paid by a third party, paid through
direct billing, or refunded to you are not shown on the tax
statements issued by the RRB. Contact your nearest RRB office if we
are deducting your Medicare premiums from your social security
benefit, and you need documentation for filing your taxes.
If the Internal Revenue Service (IRS) revises the income tax
withholding rates used to calculate Federal income taxes for U.S.
citizens, the new IRS tax rates will apply to benefit payments you
receive beginning in January 2020. Your monthly benefit payment
amount may change because of the new IRS tax rates. You can start,
change, or cancel the amount of taxes withheld from your railroad
retirement benefit by filing Form RRB W-4P and/or IRS Form W-4V
with the RRB. Contact your nearest RRB office or visit www.rrb.gov
for the forms.
If your monthly benefit amount includes Social Security benefits, the
Social Security Administration (SSA) will mail you a separate tax
statement. If you want taxes withheld from Social Security
benefits paid by the RRB, you must contact SSA to request
the withholding. If you changed your address in the past year and
have not reported the change to SSA, you must call them at 1-800772-1213 or visit www.ssa.gov as soon as possible to report your
new address.

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Let Us Know If You Change Your Address
We need your correct mailing address to mail benefit notices, tax
statements and important information about changes that may affect
your benefits. Please check your address on the accompanying letter.
If it is correct, you do not have to do anything. If it is not correct,
please contact your nearest Railroad Retirement Board office to
report your new address.

________________________________

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Payment Schedule
Banks are required to post railroad retirement benefits to direct
deposit recipients’ accounts no later than the first business day of
each month. To view a complete payment schedule for 2020, visit
our web page at http://www.rrb.gov/pands/info/paydates.asp.

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(SEE REVERSE SIDE FOR MORE INFORMATION)

Retiree Earnings Limits for 2020

Are you getting your benefits by paper check?

The earnings limit for 2020 for railroad retirement beneficiaries who
are under full retirement age (age 66 for individuals born in 1943
through 1954) and who work after retirement has been increased for
2020. For those under full retirement age throughout 2020, the
exempt earnings amount is $18,240. Benefits are reduced $1.00 for
each $2.00 of earnings over the exempt amount of $18,240.

The Department of the Treasury (Treasury) requires all Federal
benefit and non-tax payments to be made electronically. There are
two electronic payment options available to you; Direct Deposit, or
Direct Express® Debit MasterCard®.

For beneficiaries attaining full retirement age in 2020, the exempt
amount is $48,600 and only earnings in the months before the
month you attain full retirement age are counted. We must
deduct $1.00 from benefits for each $3.00 earned over $48,600. Let
us know if you need help determining your full retirement age.
There is no limit on earnings for beneficiaries who are full retirement
age or older for the entire year.
Keep in mind that there are additional earnings rules that apply to
some beneficiaries. Those rules are:


No railroad retirement benefits are payable for any month you
work for a railroad or railroad labor organization. This
rule applies to all beneficiaries, regardless of age or amount of
earnings.



Retired employees and spouses who work for their last preretirement non-railroad employer, regardless of their age or
the amount of their earnings, are subject to an earnings
deduction.

There are also special rules and earnings limits that apply to
individuals who receive railroad retirement disability benefits.
Contact us if you receive disability benefits and are thinking
about going to work.

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What to Report and Why

Your annuity entitlement and the amount payable to you each month
is determined according to law and by the circumstances that exist
on the date your annuity begins. Any later changes in those
circumstances are very important. To guarantee correct payment of
the benefits you are due, you must notify the RRB about all of these
events:
Notify the RRB:


If there is a change in your marital status;



If you begin to receive a pension from an agency of the Federal,
state, or local government, or if your present payments change;



If you file for social security benefits based on any person’s
earnings record;



If you go to work for an employer in the railroad industry;



If you will earn more than the annual earnings exempt amount,
and it was not reported on the application;



If you reported expected earnings and your earnings estimate
changes;



If your address changes;



If any person for whom you are receiving benefits dies or leaves
your care;



If you are confined in a jail, prison, penal institution, or
correctional institution due to a conviction for a criminal offense.

Switching from checks to Direct Deposit or Direct Express® Debit
MasterCard® is fast and easy. Go to www.GoDirect.org to enroll.
You can also learn more about the two options by calling Treasury’s
toll-free helpline at 1-800-333-1795, or by visiting your bank or other
financial institution. You can also contact your nearest RRB office for
assistance.

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RRB Nationwide Telephone Service

If you have a touch-tone telephone, recorded information and
automated services are available 24 hours a day, including weekends
and holidays, by calling the RRB at 1-877-772-5772. Through our
automated services, retirees can request a letter showing their
current monthly annuity rate, request a duplicate tax statement, or
request a replacement Medicare card. In addition, RRB
representatives are available through the toll-free service to speak
with you from 9:00 a.m. to 3:30 p.m., on Monday, Tuesday,
Thursday, Friday, and from 9:00 a.m. to Noon on Wednesday, except
Federal holidays.

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Computer Matching and Privacy Protection
The Computer Matching and Privacy Protection Act of 1988
requires the RRB to periodically let you know that
information you provide to us may be used, without your
consent, in automated matching programs. These matching
programs are a computer comparison of RRB records with
records kept by other Federal, state or local government
agencies. Information from these matching programs can
be used to establish or verify a person’s eligibility for
benefits and to help in the collection of debts.
Computer matching programs are conducted under strict
guidelines designed to ensure that confidential information
is protected and only used for the limited purpose of the
matching program.

U.S. Railroad Retirement Board
www.rrb.gov
RL-6 (12-19)