This is an excellent resource. As a CPA that is fairly knowledgeable and has a knack for picking up on the lingo and absorbing information fairly quickly, this channel is an absolute goldmine for me personally. Thank you
The tax code and it's implications on people are incredibly complex. And tax law is always changing, which means it's a never ending game of trying to stay up-to-date on the tax code and planning opportunities around the tax code.
Watching many of your videos. Retirement tax planning sure does seem to be aimed at fitting into a "window" -- not too high, not too low, on income. Tricky to classify/invest income and savings to maximize tax treatment. Also tricky is bridging income and medical between age 62 to 65 Medicare kickin, then to FRA or age 70 to max SS. High-earner years are past, then very lean til SS kicks in. I, single/divorced, will be inheriting - probably 10 years into retirement - two rural family acreages, 5 miles apart, one 28 acres with small rental home, the other 16 acres with grandparents' home, recently completely updated inside and out. Creeks on back of both, houses on front near highways. No idea how to prepare for that tax-wise. I may be too old to care about them when inherited. Undecided whether to live in them (I currently live 3 hours away in house with mortgage - inherited acreages are mortgage-freee) - or if I will have to live in them - to minimize capital gains, etc. Both Dad and aunt have homestead exemptions. I can't get that til 65 (61 now). Anyway, Dad says not to try to "keep them in the family", but to sell them and live where I want to. No children to leave to. The rental house is next to electrical transformer station, and there may be income potential from leasing to solar farm company (they already contacted Dad), but there are downsides to that that may not matter after my lifetime (they leave concrete footings in ground, no entry on your own property without their permission, etc.). Maybe a video on "Tax Implications of Inheriting Family Properties"? Would be so helpful to start thinking process! Particularly concerned about tax hit if I do sell one or both. Neither property ever had mortgage, built 1940s/50s and fully modernized.
Hi Andy! I enjoy your video content. My husband and I are planning to retire in 3 yrs. He will be receiving a pension, so I think it will make sense for us to delay SS, until we are able to convert all of out tax deferred savings to Roth. We are supposed to be able to continue his health care, so we should not have to worry about the limits for ACA. Not worried about IRMMA, however, our son is 17 and may be applying for FASFA, and other financial aid next year. Do you know if a Roth conversion would be counted as income for this metric? Thanks You
Hi. Sorry, but I'm frankly not sure what all goes into the measure of income used in FAFSA. However, according to this article I came across, it looks like Roth conversions would be factored in: www.bankrate.com/retirement/convert-to-roth-ira/#watch-out
An entire AGI inclusive of Rollover to Roth conversions plus your Savings and Taxable Brokerage accounts on your children name and on your name would be counted against your child eligibility and income for 2 years ago is being considered for FAFSA with Colleges allowing Financial Aid Appeal for those whose Financial Circumstances change (for example, they lost their income or job) and then in addition to FAFSA 2 years ago Tax Return you should submit Current Year Tax Return until your son graduation from college. If you son is working via college co-op program that extra income may not be counted as heavily against his eligibility, plus he may apply for and win various College Grants. Interestingly enough they don't count Real Estate you own as primary residence (not Business Income generating extra Realestate), so you can live in a Million Dollar home and still have a child qualify for FAFSA. Reaching to prospective colleges your son is applying to and negotiating Financial Aid package based on his achievements and grades and ACT / SAT Advanced Testing Scores after getting acceptance letters is always as option as some colleges maybe very generous with Financial Aid. But from the advantage of converting from Rollover to Roth vs getting or not getting FAFSA Pell Grant is up to you as well as your son willing and being able to work through college co-op (usually during breaks) to pay for his own education.
As an early retiree, social security and medicare plan B premium don't apply to me yet. I do need to balance out "traditional IRA to ROTH conversion" and "premium tax credits". During the years before 63, can I convert enough to ROTH every year and still get premium tax credits? Or do I take the advantage of the down market, convert a big amount, take the tax hit, and then get premium tax credits for the upcoming years? I'm compiling numbers and will find a solution.
The answer to that will be a resounding "it depends." So long as you maintain your U.S. citizenship, I think you'll still be subject to U.S. income taxes just the same. But if you're not signed up for Medicare, then the Medicare surcharge thing wouldn't apply to you. However, if/when you do eventually ever sign up for Medicare, not only will the surcharges potentially come into play, but you'll also have a late-enrollment penalty for the rest of your life. Anyway, there are a lot of potential factors that came come into play here, and some of it may depend on what country you live in. So it's impossible to say how exactly your tax situation will be. But, generally speaking, if you're still a U.S. citizen, assume all of these things are likely to apply.
I assume you're referring to how Social Security is taxed??? Yes, it's a stealthy form of ongoing tax increase. Because as Social Security payments grow over time (and other forms of income have generally grown over time), more and more people have more of their Social Security pulled into taxation each year. I suspect it was intentional to NOT have the income levels indexed for inflation.
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This is an excellent resource. As a CPA that is fairly knowledgeable and has a knack for picking up on the lingo and absorbing information fairly quickly, this channel is an absolute goldmine for me personally. Thank you
Great information ..... thanks for making these videos.
great information. Thanks Andy!
This is great information for us silver investors. Thanks!
50 now fascinating content. A little scary how much we don’t know.
The tax code and it's implications on people are incredibly complex. And tax law is always changing, which means it's a never ending game of trying to stay up-to-date on the tax code and planning opportunities around the tax code.
I heard people say the tax code is written in pencil.
Are roth distributions included in the provisional income?
No, they’re not. Which is why having Roth assets can be advantageous
Watching many of your videos. Retirement tax planning sure does seem to be aimed at fitting into a "window" -- not too high, not too low, on income. Tricky to classify/invest income and savings to maximize tax treatment. Also tricky is bridging income and medical between age 62 to 65 Medicare kickin, then to FRA or age 70 to max SS. High-earner years are past, then very lean til SS kicks in.
I, single/divorced, will be inheriting - probably 10 years into retirement - two rural family acreages, 5 miles apart, one 28 acres with small rental home, the other 16 acres with grandparents' home, recently completely updated inside and out. Creeks on back of both, houses on front near highways. No idea how to prepare for that tax-wise. I may be too old to care about them when inherited. Undecided whether to live in them (I currently live 3 hours away in house with mortgage - inherited acreages are mortgage-freee) - or if I will have to live in them - to minimize capital gains, etc. Both Dad and aunt have homestead exemptions. I can't get that til 65 (61 now). Anyway, Dad says not to try to "keep them in the family", but to sell them and live where I want to. No children to leave to. The rental house is next to electrical transformer station, and there may be income potential from leasing to solar farm company (they already contacted Dad), but there are downsides to that that may not matter after my lifetime (they leave concrete footings in ground, no entry on your own property without their permission, etc.). Maybe a video on "Tax Implications of Inheriting Family Properties"? Would be so helpful to start thinking process! Particularly concerned about tax hit if I do sell one or both. Neither property ever had mortgage, built 1940s/50s and fully modernized.
Hi Andy! I enjoy your video content. My husband and I are planning to retire in 3 yrs. He will be receiving a pension, so I think it will make sense for us to delay SS, until we are able to convert all of out tax deferred savings to Roth. We are supposed to be able to continue his health care, so we should not have to worry about the limits for ACA. Not worried about IRMMA, however, our son is 17 and may be applying for FASFA, and other financial aid next year. Do you know if a Roth conversion would be counted as income for this metric?
Thanks You
Hi. Sorry, but I'm frankly not sure what all goes into the measure of income used in FAFSA. However, according to this article I came across, it looks like Roth conversions would be factored in: www.bankrate.com/retirement/convert-to-roth-ira/#watch-out
An entire AGI inclusive of Rollover to Roth conversions plus your Savings and Taxable Brokerage accounts on your children name and on your name would be counted against your child eligibility and income for 2 years ago is being considered for FAFSA with Colleges allowing Financial Aid Appeal for those whose Financial Circumstances change (for example, they lost their income or job) and then in addition to FAFSA 2 years ago Tax Return you should submit Current Year Tax Return until your son graduation from college. If you son is working via college co-op program that extra income may not be counted as heavily against his eligibility, plus he may apply for and win various College Grants. Interestingly enough they don't count Real Estate you own as primary residence (not Business Income generating extra Realestate), so you can live in a Million Dollar home and still have a child qualify for FAFSA. Reaching to prospective colleges your son is applying to and negotiating Financial Aid package based on his achievements and grades and ACT / SAT Advanced Testing Scores after getting acceptance letters is always as option as some colleges maybe very generous with Financial Aid. But from the advantage of converting from Rollover to Roth vs getting or not getting FAFSA Pell Grant is up to you as well as your son willing and being able to work through college co-op (usually during breaks) to pay for his own education.
excellent!
thank you!
As an early retiree, social security and medicare plan B premium don't apply to me yet. I do need to balance out "traditional IRA to ROTH conversion" and "premium tax credits". During the years before 63, can I convert enough to ROTH every year and still get premium tax credits? Or do I take the advantage of the down market, convert a big amount, take the tax hit, and then get premium tax credits for the upcoming years? I'm compiling numbers and will find a solution.
Excellent explaination...I wonder how those taxes will be if you live abroad? I haven't seen such video discussing this option?
The answer to that will be a resounding "it depends." So long as you maintain your U.S. citizenship, I think you'll still be subject to U.S. income taxes just the same. But if you're not signed up for Medicare, then the Medicare surcharge thing wouldn't apply to you. However, if/when you do eventually ever sign up for Medicare, not only will the surcharges potentially come into play, but you'll also have a late-enrollment penalty for the rest of your life. Anyway, there are a lot of potential factors that came come into play here, and some of it may depend on what country you live in. So it's impossible to say how exactly your tax situation will be. But, generally speaking, if you're still a U.S. citizen, assume all of these things are likely to apply.
How have they not changed this in so many years what a joke
I assume you're referring to how Social Security is taxed??? Yes, it's a stealthy form of ongoing tax increase. Because as Social Security payments grow over time (and other forms of income have generally grown over time), more and more people have more of their Social Security pulled into taxation each year. I suspect it was intentional to NOT have the income levels indexed for inflation.