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Old 02-23-2016, 01:02 PM
 
Location: NW San Antonio
191 posts, read 242,610 times
Reputation: 179

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Quote:
Originally Posted by daves 57 View Post
let me try and get this right, I am full retirement age and started collecting ss at the rate of 30,000 per year. I am still working until august and will earn approx. 50,000 when I quit. my limit is 44000 then ill be taxed at 85%, so I will owe taxes but am thinking about having more taxes taken out of my pay before I quit.im trying to figure approx. how much I will owe , thank you
If possible, wouldn't it be better to suspend your SS until the year after you stop working to avoid paying the $3600 tax on it? I believe you could get a lump sum next year and not pay any tax at all if you have no other income.
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Old 02-23-2016, 01:15 PM
 
Location: Ponte Vedra Beach FL
14,628 posts, read 17,938,980 times
Reputation: 6716
Quote:
Originally Posted by daves 57 View Post
the link that you sent me says that pensions and annuities don't count as income if I am full retirement age which I am so do they count withdrawl's from a 401k as income?
Like mathjak107 says - you're mixing up 2 issues. What the link I gave you - which deals with possible reductions in SS benefits if you're still working - says:

What counts as earnings:
When we figure out how much to deduct from your benefits, we count only the wages you make from your job or your net earnings if you're self-employed. We include bonuses, commissions and vacation pay. We don't count pensions, annuities, investment income, interest, veterans or other government or military retirement benefits.

Note that if you're FRA during all of 2016 - none of this applies to you.

Withdrawals from "taxable" 401ks will count as income. Withdrawals from Roth 401ks won't. Robyn
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Old 02-23-2016, 01:38 PM
 
Location: Ponte Vedra Beach FL
14,628 posts, read 17,938,980 times
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Quote:
Originally Posted by mathjak107 View Post
...that to me is worth the longevity risk...
I read an interesting article a week or two ago about retirement calculators (forget where I read it). The gist of the article was most oversimplified important issues - like life expectancy. They just assumed that a man/woman would live an average amount of years. The article mentioned that this approach missed lots of easy things that can affect our longevity. Like whether we smoke - have various diseases like diabetes - have family histories of more or less longevity - even whether we're married or regularly use seat belts. In contrast to many other things - the answers to these questions are very easy to come by.

Might be interesting for people who rely on simple calculators to find a zippier one to hone in on personal life expectancy. I wouldn't use a calculator like this in terms of planning a date when I'll run out of money - but might use it in terms of thinking about when to start Social Security (especially if I were single - because joint life expectancy is longer than single life expectancy).

Here's a calculator to play around with:

https://www.myabaris.com/tools/life-...g-will-i-live/

Robyn
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Old 02-23-2016, 01:51 PM
 
71,669 posts, read 71,801,099 times
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the calculators i have used , firecalc and fidelity's assume no average life expectancy . they just suggest planning until 95 . that way even if you don't think you will live that long you have slack in the plan .

average life expectancy for a couple today is 87 since either one can outlive the other .. remember too average life expectancy is only the tipping point of 50% where 1/2 died and 1/2 lived . it isn't assumed you died at 87 if a couple .

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Old 02-23-2016, 04:22 PM
 
Location: Ponte Vedra Beach FL
14,628 posts, read 17,938,980 times
Reputation: 6716
Quote:
Originally Posted by mathjak107 View Post
the calculators i have used , firecalc and fidelity's assume no average life expectancy . they just suggest planning until 95 . that way even if you don't think you will live that long you have slack in the plan .

average life expectancy for a couple today is 87 since either one can outlive the other .. remember too average life expectancy is only the tipping point of 50% where 1/2 died and 1/2 lived . it isn't assumed you died at 87 if a couple .
That is silly. For example - X smokes and is a heavy drinker and has diabetes and never exercises and is 50 pounds overweight and has had heart problems. Is X's life expectancy the same as Y's - a person who doesn't smoke - has 4 (medicinal) glasses of red wine a week - exercises religiously - doesn't have any serious medical problems and is normal weight? Of course not.

I'm not saying I'd spend my last dollar based on these life expectancy projections - but would certainly take them into account when planning to do something like start drawing from SS. My housekeeper's husband died a couple of weeks ago. Cancer. He was only 63 or so. Of course - he was lower middle class and got what was IMO lousy health care. He might have made it to his late 60's or so with better health care.

Another example - no one on my mother's side of the family has ever made it past 90 (except for an uncle who died at 91 with horrible Alzheimer's - I hope someone shoots me before I get to where he was). On my father's side - pretty much everyone is more or less fine into their mid-90's. So you have to look at what you personally might be facing down the road.

Also - like I said - there are different issues. Would I spend spend down to zero expecting I'll be dead when I'm 79? No. Would I take SS earlier rather than later - yes. Robyn
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Old 02-23-2016, 04:27 PM
 
71,669 posts, read 71,801,099 times
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many in really poor health are already dead by 65 and are out of the equation .

in fact i know couples personally where the sickly one is still alive and the healthier one is gone .

insurers know how many folks a year will die but can't tell us who so good planning says assume it is you that lives. better to plan longer then to short .

the statistics include both those that die earlier and those that die later , in this case for a couple , by age 87- 1/2 of us will die before that age and 1/2 of us after that age . the question is which side are you going to be on ?

the last decade has seen 1 year of life added every 4 years according to the society of actuaries .

Last edited by mathjak107; 02-23-2016 at 04:52 PM..
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