U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
 
Old 05-18-2015, 02:54 AM
 
72,005 posts, read 72,043,164 times
Reputation: 49565

Advertisements

as i mentioned a few times in threads , the biggest tax hits happen at the lower incomes when dealing with getting your ss taxed.

the closer to the thresholds where ss gets taxed the more you have to pay attention.

you can decide to take an extra 1k out of an ira for a trip and see almost 50% of it vanish in taxes.

that is because the two moving targets of getting income taxed and getting ss taxed can produce some wild marginal tax rates at the threshold levels,
Quick reply to this message

 
Old 05-20-2015, 10:25 AM
 
708 posts, read 504,881 times
Reputation: 1165
Wish they had Roth when I started saving. Now I have all my money in Regular IRA and have very little free money to use until after I retire. Bought a 2nd house that I wanted to pay cash for but ended up getting a loan because withdrawal from IRA would kill me come tax time. Much cheaper to pay 3.5% borrowing for house. Now I am in the same situation with my wife turning 62, we were going to have her start collecting SS but 30% will be gone each year with taxes until I retire. Stuck! unless someone has suggestion for me.
Quick reply to this message
 
Old 05-20-2015, 01:17 PM
 
Location: RVA
2,175 posts, read 1,274,479 times
Reputation: 4500
If you're in the 30% bracket now, then you cant get tax deferred IRA now anyway (unless your wife makes a lot less) &what will you be in at retirement? No reason to not save $6.5k in a Roth now, if you are maxing out tax deferred already. Once you have one, if your rate is much lower for the years before your RMDs, then do rollovers during those years up to where it makes sense tax wise, to reduce your RMDs and have non taxable income later when you need it, in case rates go up (they sure ain't going down!) or if you or your spouse should die and then the survivor would be stuck paying a much higher rate as a single filer.
Quick reply to this message
 
Old 05-22-2015, 08:29 AM
 
708 posts, read 504,881 times
Reputation: 1165
Perry
Thanks for information I will look into the Roth next year. I put $6500 in tax deferred IRA (my wife is retired and makes lot less only a pension) because it helps me out with my taxes but like I said leaves me less money to use for other things until I retire. I need to get an accountant to help me as we have lots of decisions to make as my wife approaches 62. We are leaning right now to for her to wait to collect until I retire at 65. If you have any other advice please feel free.
Thanks
Quick reply to this message
 
Old 05-22-2015, 03:11 PM
 
Location: RVA
2,175 posts, read 1,274,479 times
Reputation: 4500
The problem with accountants or financial advisors, etc is they have to be versed on intelligent retiremnt income theough out your entire life, for YOUR SPECIFIC income, assets and requirements, with contingency planning for what ifs. As mathjak often points out, the transition from wealth accumulation to income generation and tax reduction are totally different animals. Most aren't well versed in that, at all. They know how to save to tax money over the next X years, or how to build a portfolio for a certain time frame, with a set of rules they understand that they try to fit to all, & all I've talked with left a lot to be desired. I found more information on CD these last 4 months than I did from them. The Roth issue really got my goat, when without fail they spout "if your in the same bracket at retirement that you're in now, then its not effective". Then I bring up the death of a spouse propelling me in to single filing and the possible double whammy of reduced income and higher brackets & it turns in to "well, its different in that case". No ***** Sherlock! Thats why I'm talking to you, because I only know what I know, & I'm intelligent enough to know there are plenty of fine points I'm likely missing, and if I'm going to pay someone then they damn well better know a lot more than me! There is no perfect plan, but if intelligently armed, at least one can make some smart decisions when needed.
Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:
Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top