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.
I'm thinking you have a great accountant!! How do you pay 0% on sale of stock and bonds and mutual
funds on less you did have any gain on them?
No, he already paid the tax on the income used to purchase these investments. Investors in 401(k)s and IRAs have not. That's the difference.
If you have $100 million savings from income that has already been taxed, invest at 0% and just live by spending down the principal, your tax bill is zero and your Social Security is not taxed either.
SS is NOT taxed in my state. I sell a few things on Ebay every once in awhile and baby sit and pet sit occassionally. I perhaps should not have implied ''self-employment''. It's not a regular nor significant amount of money.
Moderator cut: Off topic
Last edited by Oldhag1; 05-15-2017 at 07:31 AM..
Reason: Please discuss the topic only, not other posters
a retired couple who delays social security can pull 22k of retirement money tax free just using the standard deductions and exemptions .
they can draw 40k and pay 4.50% tax . that is a gift from the tax gods . once you collect ss and take rmds that same money could see 25% tax .
you can take 8 years of 40k and deplete 320k in ira money while growing ss and pay very very little tax and reduce rmd's
Quote:
Originally Posted by Perryinva
Sure, if both have max SS and defer until 70, that's almost $90k right there. Plus the standard deduction and amount to get to 15% bracket, then $100k is easy. But two earner couples rarely only have SS and LTCG income.
Good thread.
We are in our late 50's and started late but when we did we maxed our 401k contributions and are at $600k. We also have another $700k post taxes. This year we filed an extension and I don't know if we should max 2016's contribution... Maxjack said it would take 8 years to deplete $320k.
Our plan was to spend the deferred money first and keep within the 15% tax bracket but now I'm confused. Can you explain 100k is easy Perryinva?
We take a bit of money out of our IRAs and withhold 10%. Hubby works part time, so has the minimum withheld. By the time we deduct medical expenses and mortgage interest, we get everything back.
We are in our late 50's and started late but when we did we maxed our 401k contributions and are at $600k. We also have another $700k post taxes. This year we filed an extension and I don't know if we should max 2016's contribution... Maxjack said it would take 8 years to deplete $320k.
Our plan was to spend the deferred money first and keep within the 15% tax bracket but now I'm confused. Can you explain 100k is easy Perryinva?
Perry was responding to one of my comments. I had described my plan for retirement funding. Our assets are split between taxable accounts and deferred 401k's, so like your situation. Simplified version is as follows... Live on 401k prior to age 70, then after 70 live on SS plus dividends and cap gains from the taxable accounts.
During after-70 part there's likely no tax until something above $100k income because of the way SS and investment income get taxed.
SS is NOT taxed in my state. I sell a few things on Ebay every once in awhile and baby sit and pet sit occassionally. I perhaps should not have implied ''self-employment''. It's not a regular nor significant amount of money.
Thank you for your explanation. My husband made very little this year, little in my book and we paid self employment tax to the tune of 10%, on that portion of income. So that's why I was surprised to read that you didn't have to pay.
Moderator cut: off topic
My main job is working 24 hrs a week which provides the entire family with medical, dental, 401k and other benefits for just $100 contribution. Another another side job where it can be claimed as self employment or not claimed at all. No tax fraud being committed here so relax. We have one disabled relative we help care for and make a little there. We are barely into the 15% tax bracket . At retirement, we will remain in the same tax bracket unless our inheritance is taxed.
Last edited by Oldhag1; 05-15-2017 at 07:36 AM..
Reason: Removed references to deleted posts
"You have to file an income tax return if your net earnings from self-employment were $400 or more."
"Self-employed individuals generally must pay self-employment tax (SE tax). SE tax is a Social Security and Medicare tax primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners. In general, anytime the wording "self-employment tax" is used, it only refers to Social Security and Medicare taxes and not any other tax (like income tax)."
For example - I receive $3600 every year from a small gig I do as an Independent Contractor (self-employed) and I have to pay around $500 on that $3600 in Self-Employment taxes which refers to Social Security and Medicare taxes on that $3600 - even though my only income is monthly Social Security (besides the $3600 gig) and I do not pay income tax on my Social Security income. There are special IRS forms for these Self-Employment taxes.
(as an aside, I have savings to supplement my monthly Social Security income)
Last edited by matisse12; 05-14-2017 at 05:40 PM..
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 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.
