Questions tagged [retirement]
This tag should be used for any questions related to retirement or post-retirement, such as planning or saving for retirement, or asking about benefits or issues after retirement.
704
questions
3
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1
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63
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Tax mitigation for payment received under an employment separation agreement
I am of retirement age and "state of mind", living and employed in Ontario, Canada. My employer is ready to offer me a lump sum for an amicable separation. I am concerned about the tax ...
- 1,062
0
votes
2
answers
156
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Traditional IRA Conversion to Roth IRA (Should I do it or not)
I am in USA and have a Traditional IRA account. It has around $300K. I cannot contribute to Roth IRA due to my income limits. This is my personal traditional IRA. This means after I get a check from ...
- 245
5
votes
1
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303
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are my ss benefits taxable income if my spouse continues working?
I can't get a straight answer on this as none of the calculators on line make a distinction between my salary and my spouses salary, my ss benefit vs spousal benefits, etc. My situation is this:
...
0
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1
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216
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Can I be eligible to receive retirement benefits if I started working at age 62?
I started working in January 2019 at age 62 and finished working in December 2028. Are 10 full years of work considered?
key information from the comments:
Request Late retirement monthly benefits in ...
2
votes
1
answer
584
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Does retirement (pre-Full Retirement Age) qualify for a special enrollment period for the affordable care act?
If I retire before I am old enough to be eligible for Medicare, and it wasn't a forced retirement by my employer. Do I qualify for a special enrollment period for the Affordable Care Act (aka ...
- 53.2k
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2
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3k
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In the US, is the Social Security benefit negatively affected if you have one or a few low income years?
I think it is said that the benefits will be based on the top 35 yearly wages in our work history.
I am not sure if it is by "year" or by "quarter" (meaning 35 x 4 = 140 quarters), ...
- 1,097
0
votes
2
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156
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How can I calculate cumulative rate/gains for retirement fund in a spreadsheet throughout a year?
Novice to retirement funds and investing here. I'm wanting to build a spreadsheet in Excel that can help calculate my annual rate of return for retirement accounts.
I have some elementary questions ...
0
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1
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470
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I am 63 with a Heloc at 9%. Should I pull from my 401K to pay off this high interest Heloc
I am 63 with a $37,000 dollar Heloc at 9%. Should I pull from my 401K to pay down this high interest Heloc and start putting the extra money away to build my savings. We have $950,000.00 in our ...
1
vote
1
answer
87
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What is the reasoning behind high income requirements for 457b plan enrollment
If 457b plans are designed primarily for state and local government employees whose mean compensation is typically lower than 100K in the U.S., why would some institutions that employ state/local ...
- 113
1
vote
1
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138
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What's the case against being 1.3x levered in PA if you're in your 20s?
If you're in your late 20s and own a bunch of SPY and diversified stocks, why shouldn't you be 1.3x levered?
2.0x levered seems too aggressive given there are 50% drawdowns to the S&P occasionaly.
...
- 13
1
vote
0
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52
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How do I determine my New York pension category?
I am filing my 2023 tax return for New York with H&R Block. When I import my 1099-R form for my retirement plan with Transamerica, I am asked to select a category for my New York pension. The ...
- 340
9
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3
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2k
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Cashing in personal retirement for real estate
I’m currently a 40 yr old military officer approaching 20 years of service, after which I will retire. My retirement income from my service will provide ~$60k per year for the rest of my life, plus ...
- 91
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5
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3k
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Rate of return on an Life Insurance Annuity
So as I approach retirement age, many people are out there suggesting annuities as a way to fund retirement. It's seductive, as they typically have around a 6% payout, that is 100K buys you 6k worth ...
- 78.5k
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68
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SEP IRA eligibility criteria?
I am trying to determine if I can establish and contribute to a SEP IRA. Here are what I think to be the relevant details and questions.
I receive a W-2 from my day job employer
I have side income ...
- 345
1
vote
1
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496
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Why do people like Mega Backdoor Roth IRAs?
So, according to me:
Traditional IRA:
Money goes in tax-free
Grows tax-free
Taxed as ordinary income in retirement
Roth IRA:
Money goes in after-tax
Grows tax-free
Tax-free in retirement
(These ...
- 693
9
votes
5
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3k
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Are there any "strategies" for Social Security besides the obvious decision as to when to take it?
I am of the age that I am constantly receiving mailings for local and web based retirement seminars, many touting "strategies" for withdrawing Social Security entitlements. This word, (in ...
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3
answers
347
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The best way to maximise saving for early retirement
I'm 23 and working as a software engineer in the UK. I've made a point in wanting to start saving for retirement as early as possible in order to retire younger.
I'm looking for the most effective (...
- 111
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votes
2
answers
587
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How is 401k basis calculated? (Warning, wrong question.)
Normally if you sell one equity and buy another with that money, any gains or losses are reflected in your taxes at the time you do that rebalancing and you have a new cost basis on the new investment....
- 49.8k
1
vote
1
answer
71
views
How do I model the diversification benefit of adding something to my portfolio?
Question
How can I quantify the marginal diversification benefit of adding a particular holding to a portfolio?
Context
In this question, I asked about manually replicating a world-tracker ETF by ...
- 121
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0
answers
64
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Does dividend tax witholding mean that ETFs aren't necessarily great for personal pensions overseas?
Question
For tax-shielded personal pensions (US IRAs, UK SIPPs), should one prefer to "manually replicate" ETFs by holding stocks directly instead of buying ETFs, to avoid US withholding tax ...
- 121
3
votes
1
answer
814
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Can you buy an annuity before age 55 in the UK?
I wish to retire young. To estimate how much I would need, I have hunted around the internet for any way to estimate how much an annuity paying £30,000 a year would cost for a 40-year-old man with no ...
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1
answer
3k
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If you are not eligible for social security by 70, can you continue to work to become eligible after 70?
If you start working in the US late in life and don't have 40 credits by the time you turn 70, can you still become eligible for social security if you continue working past 70?
Various sources say ...
- 123
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3
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172
views
How would you balance this scenario?
I have two jobs, one is in the private sector (access to 401k) and one is in the public sector academia (access to 401b/453b) and my wife has a private sector job (access to 401k) and both of us of ...
- 1,481
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2
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706
views
Can an IRA contribution with after tax money be deductible?
I am trying to make an amendment for 2020 tax year. In December 2020 I contributed $6000 for Roth Ira and $6000 for traditional Ira (I did not know any better). I used after tax money in both ...
- 71
1
vote
1
answer
303
views
After 4 yrs, new money shows up in closed 401K account
I separated from a company on 12/30/2015. Feb 2016 I paid $60 distribution fee to rollover the entire 401K balance to an IRA. Fast forward 4 yrs, in March of 2020 I get an email "your statement ...
1
vote
2
answers
347
views
Why not stuff all my money into a new high interest savings?
I have a well-balanced portfolio. I am leaving my job for a year. I see here that I can potentially receive 5% on my money. Is there a reason not to take everything out of stocks and bonds and put ...
-1
votes
1
answer
190
views
Should I sell off my Traditional IRA holdings in the first year I stop working after 60?
Just to experiment with Roth IRA and Traditional IRA, I do have both. I have some holdings in Traditional IRA, but they are more like US$1000 and a few hundred dollars in some other firms.
So let's ...
- 1,097
0
votes
1
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670
views
For the US, how to calculate the Social Security benefits if I stop working at 60 or 62 but claim benefits at 70?
As related to this question and the calculator at ssa.gov, they tend to say: stop working at 62 and start claiming benefits at 62, or stop working at 70 and start claiming benefits at 70.
However, ...
- 1,097
6
votes
2
answers
2k
views
Can I buy my own C-Corp through a Roth SDIRA?
Say I have a C-Corp that is holding my investments. I want to eventually cash out of my positions in the C-Corp and put the money into my Roth SDIRA LLC. Here is the plan my buddy and I have come up ...
- 61
2
votes
1
answer
271
views
Vanguard: Targeted Retirement Mutual Funds vs Targeted Retirement Trusts
I have two different 401(k) accounts and each hold a Vanguard "Targeted Retirement 2040" instrument. I had assumed they were the same, but I just realized that the two accounts actually hold ...
- 233
4
votes
1
answer
798
views
In the US, is post tax 401k different from Roth 401k?
I had a talk with the brokerage firm retirement planning team, and they told me that if I have money in 401k, it can be pre tax, post tax, or Roth 401k, and even post tax and Roth 401k are different.
...
- 1,097
0
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0
answers
49
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Is using IRA, Roth IRA, and 401k money between the age of 62 to 70 in general a better choice than claiming social security? [duplicate]
My thinking this: if I don't use IRA, Roth IRA, or 401k money between the age of 62 and 70, but just let it grow, then let's say, if it was $500k at age 62, then if I am lucky to get 10% return per ...
- 1,097
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vote
2
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144
views
Does the US IRS tax board have a provision that any mistake or error such as a few cents or a couple of dollars will not be followed?
When I transfer money from my account to another account (such as from Traditional IRA to Roth IRA), the rule is that if the money has appreciated, then I need to pay tax on it.
But the money is in a ...
- 1,097
0
votes
1
answer
63
views
How are the income conversion factors for 3%, 5%, and 7% interest rate calculated for retirement income in the U.S.?
I'm reading the U.S. Department of Labor's PDF Taking the Mystery Out of Retirement Planning. Page 17, Worksheet D, asks the reader to take their total estimated savings in different retirement ...
1
vote
0
answers
54
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Pension Rollover Problem
A friend of mine had a deadline of 2/17 to make a decision about the distribution of her pension that needed to be rolled over. She missed the deadline. Fidelity automatically chose one for her and ...
- 76.9k
0
votes
3
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445
views
Is it correct to think: when the government prints money and I buy 3 houses, then when the price of house doubles, I get 1.5 houses for free?
It actually happened in a similar fashion in the US: in 2015, the price of a townhouse nearby was $850k.
Then about 1 year later, the price of it went to $1.5 million.
For simplicity's sake, let's say ...
- 1,097
-1
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2
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355
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I earn $1 more and now my Roth IRA is "illegal" or "invalid" in the US? [duplicate]
Because my 401k is limited to a list of about 30 items, I can't buy what I want, such as QQQ or Apple or Google stocks.
So the only way for me is to invest in Roth IRA.
However, there is this rule: ...
- 1,097
2
votes
3
answers
148
views
What are the reasons to avoid rolling over IRA into 401k plans?
Are there reasons for and against doing this?
For
I can only think of having more options for what securities to buy in IRAs since 401k options are limited.
Against
The only reason to do the IRA ...
- 729
3
votes
1
answer
354
views
Contribution limit differences between 401k and IRAs
Is there a reason why the contribution limits of these are drastically different with the 401k limits being about three times higher?
Moreover, why is it that the 401k limits go up over the years but ...
- 729
6
votes
1
answer
320
views
RMD, how is it withdrawn?
How is RMD (Required Minimum Distribution) withdrawn, say the 4% RMD is withdrawn from each account separately (IRA, 403B, SEP IRA, Simple IRA) or is it computed on the entire retirement accounts and ...
- 676
-1
votes
2
answers
206
views
Pay 50% on benefits from US Social Security?
I am not sure if it is like what it sounds, which is scary:
https://www.investopedia.com/ask/answers/013015/how-can-i-avoid-paying-taxes-my-social-security-income.asp
From $25,000 to $34,000: You may ...
- 1,097
2
votes
1
answer
208
views
In the US, if I am afraid my income may be over $153,000 for Roth IRA, is it true I can do the IRA backdoor?
I saw on the Robinhood website that they do IRA and Roth IRA now, and they have a 1% matching, but it says for the Roth IRA qualification for year 2023:
Anyone with a MAGI (modified adjusted gross ...
- 1,097
1
vote
0
answers
78
views
How can I make informed decisions on Keogh investments?
I am in my late twenties making enough to live quite comfortably. My company offers Keogh retirement plans, and mine has been active for about a year and a half. Currently, about a third of it is in ...
- 51
0
votes
2
answers
692
views
Can F1 students in the US earn Social Security work credits?
Assume a typical F1 student in the US. No side gig, focusing on their PhD work, getting a stipend from their school and possibly doing summer internships using CPT. Can they earn Social Security work ...
- 11.4k
6
votes
3
answers
4k
views
Financial efficiency - purchasing a car with cash from retirement withdrawal vs. by financing
When someone in their retirement is purchasing a car, is it financially more efficient for them to take a lump sum of cash out of a deferred-tax retirement account (and pay income tax on it), or is it ...
- 195
28
votes
2
answers
7k
views
Saving for retirement... starting at 68 years old
It may sound like a joke, but it is not. I imagine I am not the only one in this situation. I guess.
Here is what I have going on. I am a "one man show" self employed carpenter. It took many ...
- 417
1
vote
0
answers
60
views
What is a structured note and when does it make sense as part of my financial plan?
I have been talking to retirement planners recently and more than one has suggested that structured notes as part of my strategy for investing after retirement. I thought I was pretty financially ...
- 53.2k
2
votes
1
answer
72
views
401k Matching Rules Regarding Losses when Match is Revoked
My employer matches my 401k but it is on a long vesting schedule and I will almost certainly leave before it finishes vesting. I know I will have to give it back but was wondering how to gains/losses ...
- 472
0
votes
1
answer
83
views
Actively Managed Funds or Index Funds [closed]
I am 40 and currently I am investing in the following funds.
T Rowe Price (Actively Managed Funds) (Traditional IRA contribution POST TAX):
Communications & Technology Fund - I Class
TTMIX
New ...
- 759
3
votes
3
answers
1k
views
When the SSA decides how much you make for the year to determine whether you pay taxes on SS, does it count IRA contributions?
I'm over 62.5 years old and semi-retired. I have a part-time gig that pays about $23K per year. I'd like to pull the trigger on Social Security, but I make too much. (I have another small gig that ...
- 429