Simple Hacks For Retirees. Financial Or Otherwise. "On Topic"

[olroadbeech]

recently received a $60 increase on social security. with the pension and SS gonna be hit with higher taxes and with no house payment may have to write a check.

haven't even touched the 401k and IRA's yet. Does anyone know how to save on taxes in retirement? With just the pension payment it was easy but now it's getting more complicated.

 

[twoweeled]

recently received a $60 increase on social security. with the pension and SS gonna be hit with higher taxes and with no house payment may have to write a check.

haven't even touched the 401k and IRA's yet. Does anyone know how to save on taxes in retirement? With just the pension payment it was easy but now it's getting more complicated.

Too much money coming in isn't such a bad problem to have. I have yet to dip into my 401K. I'm not competing in the; Look how much money I died with, contest. So I do plan on starting to take it out. Probably in another two years. I'm going to have to do some reading and planning on the best way to handle tax consequences pulling it out.

 

[IVE GOTTA PACKAGE 4U]

Too much money coming in isn't such a bad problem to have. I have yet to dip into my 401K. I'm not competing in the; Look how much money I died with, contest. So I do plan on starting to take it out. Probably in another two years. I'm going to have to do some reading and planning on the best way to handle tax consequences pulling it out.

You could take an in kind distribution if you don't need the money. Take out what you can without moving into a higher tax bracket and it will lower your RMD when you hit 70 1/2

 

[olroadbeech]

They changed the age for Required Minimum Distribution ( RMD ) from 70 1/2 to 72 years of age. for your retirement accounts.

good news for some.

 

[UpstateNYUPSer(Ret)]

They changed the age for Required Minimum Distribution ( RMD ) from 70 1/2 to 72 years of age. for your retirement accounts.

good news for some.

Good news for everyone.

They also eliminated the age restrictions for contributing to both Traditional, if you are still working, and Roth IRA's, whether you are working or not.

 

[trickpony1]

Are these changes due to COVID19 or is the IRS doing them out of the kindness of their heart?

They changed the age for Required Minimum Distribution ( RMD ) from 70 1/2 to 72 years of age. for your retirement accounts.

They also eliminated the age restrictions for contributing to both Traditional, if you are still working, and Roth IRA's, whether you are working or not.

 

[UpstateNYUPSer(Ret)]

Are these changes due to COVID19 or is the IRS doing them out of the kindness of their heart?

These changes were part of the TCJA.

 

[trickpony1]

These changes were part of the TCJA.

Tax Cuts and Jobs Act of 2017 - Wikipedia

We waited 3 years?

 

[brownmonster]

Tax Cuts and Jobs Act of 2017 - Wikipedia

We waited 3 years?

I believe he is referring to the SECURE act.

 

[UpstateNYUPSer(Ret)]

I believe he is referring to the SECURE act.

You would be correct.

 

[olroadbeech]

made a mistake on our taxes. i listed all social security as income but found out that the first 32k is exempt for married filing jointly.

got an extra 3600 in refund. now going to amend 2018 and 2017 because made same mistake. you have 3 years to file amended returns.

 

[burrheadd]

made a mistake on our taxes. i listed all social security as income but found out that the first 32k is exempt for married filing jointly.

got an extra 3600 in refund. now going to amend 2018 and 2017 because made same mistake. you have 3 years to file amended returns.

You better talk to Nancy first

 

[satellitedriver]

made a mistake on our taxes. i listed all social security as income but found out that the first 32k is exempt for married filing jointly.

got an extra 3600 in refund. now going to amend 2018 and 2017 because made same mistake. you have 3 years to file amended returns.

Pay the 79 dollars to use Turbo Tax.
It is well worth it.
Tax on SS is based on taxable earned income. The max your SS income can be taxed is 85%.
What is the deciding factor is your total reportable taxable income minus all allowed deductions.
Capital gains tax are based on assets held less that one year and are taxed as earned income.
Caveat, assets sold after 1 year and your reportable taxable income is less than $80,000."married" the profit is not subject to any tax.
Tax software is worth its weight in gold and does the ground work for you.
I am just an old retired UPS man, so you know I can't be trusted.

 

[Re-Raise]

Pay the 79 dollars to use Turbo Tax.
It is well worth it.
Tax on SS is based on taxable earned income. The max your SS income can be taxed is 85%.
What is the deciding factor is your total reportable taxable income minus all allowed deductions.
Capital gains tax are based on assets held less that one year and are taxed as earned income.
Caveat, assets sold after 1 year and your reportable taxable income is less than $80,000."married" the profit is not subject to any tax.
Tax software is worth its weight in gold and does the ground work for you.
I am just an old retired UPS man, so you know I can't be trusted.

I agree! I use HR block software to do the taxes for my wife and me, our kids and my parents. It wont allow you to screw up like Oldroad on your social security taxes.

 

[Hootie]

Future said:
FLA?

That's one of them.

In the end I will probably just move closer to my daughter near Albany.

Just Please don't New York our Florida!!

p.s. I busted out laughing about your vasectomy line!!

 

[burrheadd]

Nice post @Hootie
SMH

 

[IVE GOTTA PACKAGE 4U]

Nice post @Hootie
SMH

He doesn't post very often

 

[olroadbeech]

They are thinking of raising the RMD age from 72 to 75. depending on your health this would be good.

Luckily we were able to live on the pension 3 1/2 years before social security kicked in which is almost all gravy. The SS goes into mutual funds. We havent had to touch our 401k or IRA's yet in the last 6 years.

I know this may not be possible for some because of kids in college, medical emergencies , travel, home improvements , etc. However our retirements accounts have grown substantially .

This , of course , could change overnight.

 

[upschuck]

They are thinking of raising the RMD age from 72 to 75. depending on your health this would be good.

Luckily we were able to live on the pension 3 1/2 years before social security kicked in which is almost all gravy. The SS goes into mutual funds. We havent had to touch our 401k or IRA's yet in the last 6 years.

I know this may not be possible for some because of kids in college, medical emergencies , travel, home improvements , etc. However our retirements accounts have grown substantially .

This , of course , could change overnight.

The RMD should be abolished.

 

[IVE GOTTA PACKAGE 4U]

The RMD should be abolished.

They want their tax money