Search found 312 matches

by Retired2013
Sat Mar 16, 2024 8:25 am
Forum: Personal Finance (Not Investing)
Topic: How much should I leave to nieces/nephews vs. siblings vs. charity I'm passionate about?
Replies: 66
Views: 5590

Re: How much should I leave to nieces/nephews vs. siblings vs. charity I'm passionate about?

Simple and easy and requires no complicated legal stuff. In your will, leave to each other and when both of you are gone, 100% goes to the charity you want to support. Easy Yes, I'd like us to do this: leave to each other, and when both of us die, the remainder gets split between his beneficiaries and mine. But the actual way to do this seems really complicated. A joint will? (Every advisor seems to hate them because they become irrevocable). Mirror wills? One pour-over joint trust for our joint property, and two individual trusts for our beneficiaries? Is there a simple way to do this?? We are in the same boat. As of now, 100% to the surviving spouse. Then comes the trust in the surviving spouse. We both want 50% to go to each family. We ...
by Retired2013
Fri Mar 15, 2024 11:37 am
Forum: Personal Finance (Not Investing)
Topic: How much should I leave to nieces/nephews vs. siblings vs. charity I'm passionate about?
Replies: 66
Views: 5590

Re: How much should I leave to nieces/nephews vs. siblings vs. charity I'm passionate about?

How do you setup a "trust that provides for surviving spouse" IF surviving spouse is trustee? Can't the trustee drain the trust? If you name another person as trustee, then you don't trust your spouse? The other question, we would love to start gifting "but only after our possible end of life needs/desires are accounted for". How do you know what amount is required? We are self-insuring for LTC so we are frozen on gifting. If current nursing home costs are $15k per month, then 25 years from now at a 5% healthcare inflation rate would mean we need $50k per month for 1- 3 years for one of us? IANAL, but a good estate attorney should be able to help you set up a suitable trust. There’s a HEMS (health, education, maintenanc...
by Retired2013
Fri Mar 15, 2024 8:52 am
Forum: Personal Finance (Not Investing)
Topic: How much should I leave to nieces/nephews vs. siblings vs. charity I'm passionate about?
Replies: 66
Views: 5590

Re: How much should I leave to nieces/nephews vs. siblings vs. charity I'm passionate about?

I have, but I'm concerned about possible long-term care issues. On the other hand, both my spouse and I feel very strongly about making sure we have the legal and medical tools at hand to prevent such a need (how's that for vague on a public forum?) My father’s side shares that view, and most took matters into their own hands near the end. I would suggest keeping enough assets should circumstances change your view and you want to be able to fund expensive care. Without children, I’d have trusts that provide for surviving spouse and protect assets for your charitable interests. In our personal case, with children, it’s a discussion between us as to how much we should leave them. The older I get, the more I want to set aside for charity, but...
by Retired2013
Thu Feb 29, 2024 5:55 am
Forum: Investing - Theory, News & General
Topic: Retirees apparently tend to maintain assets - lessons for BH investors?
Replies: 129
Views: 17377

Re: Retirees apparently tend to maintain assets - lessons for BH investors?

I've found retirement to be surprising in terms of the type of spending more than the amount. I hadn't predicted that after several years I would have spent more on taxes than on everything else combined - and that isn't even close. That is depressing. Taxes are more than all other spending combined now. I had thought that may change once earned income ended. We expect, on average, that the real value of our assets will increase during retirement. Of course a bad stock market could produce individual down years. At very conservative estimates of future returns, over the years, our net worth should grow in real terms. To spend more money, we would have to buy things we would rather not have just for the sake of higher consumption. That woul...
by Retired2013
Sat Feb 24, 2024 5:50 am
Forum: Personal Finance (Not Investing)
Topic: Federal taxes due > $2,000
Replies: 25
Views: 3367

Re: Federal taxes due > $2,000

To my knowledge, it's not HR or Payrolls job to help fill out the W4. If I recall, it's HR job to provide all the forms when hired and it's payrolls job to accept the form and process the form in the system. They don't provide tax advise.
by Retired2013
Thu Feb 22, 2024 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: Per stirpes and Vanguard (one more time)
Replies: 83
Views: 5571

Re: Per stirpes and Vanguard (one more time)

[/quote] What I want to do is to name a beneficiary, Joe Blow, for instance, and have his portion go to his heirs per stirpes if he predeceases me. I want to designate him "Joe Blow per stirpes". How does that violate the definition of "per stirpes"? Fidelity, for instance, lets me and everybody else do it. This is about a Vanguard policy, not the definition of "per stirpes". The only Vanguard problem is that Vanguard customer service has proven to be a random answer generator when asked what the policy is. [/quote] From what is being said here, I guess I have problems with my beneficiaries, per stirpes. The easy solution is IF Joe Blow predeceases you, go back to the beneficiary form and remove Joe Blow and ad...
by Retired2013
Thu Feb 22, 2024 3:56 pm
Forum: Personal Finance (Not Investing)
Topic: Who keeps original will?
Replies: 68
Views: 6679

Re: Who keeps original will?

When my mother passed in 2017, I knew I was the named executor of her will and the will was located in her fire safe box. When I gave it to the law firm to probate, the paralegal came back and said a will was already on file with the Surrogate Court. The will on file was from back in 1950's or 1960's and listed my uncle as executor and guardian. My uncle is still alive (in his 80's) so they had to contact him about the will and sign-off. Apparently you can file your will with the Surrogate Court with a fee. My DW and my wills are currently with our attorney. However, since we have no children, after the first one passes, the remaining spouse will file the will with the Surrogate Court as a safety precaution so somebody can't say no will exi...
by Retired2013
Mon Feb 19, 2024 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Annuity quote doesn't make sense
Replies: 12
Views: 1139

Re: Annuity quote doesn't make sense

Have you looked at the 25 year certain? age 64 + 25 = 89. Last time I looked it was paying a calculated 5.6%. Risk is funds stop at age 89.
by Retired2013
Mon Feb 19, 2024 11:36 am
Forum: Personal Investments
Topic: Confused about Vanguard settlement fund.
Replies: 34
Views: 3698

Re: Confused about Vanguard settlement fund.

So, if I need to withhold taxes from the tIRA for Roth conversions or whatever, I plan to do clean Roth conversions with no tax withholding and then do a tIRA withdrawal that withholds 99% for tax at some point near the end of the year. I know how to do both of those transactions online already and they are easy to do. +1 Two transactions. Example; $40,000 withdrawal, 68% Federal ($27,200) and $10,000 state. Balance $2,800 to bank account. You can verify this in the Retirement Summary - IRA Distribution page. Second transaction $100,000 clean Roth conversion with no tax withheld. At year-end you get a 1099-R for $140,000. Word of caution from my experience. I had a couple of small stock mutual funds I wanted to get out of my tIRA and conve...
by Retired2013
Fri Sep 08, 2023 8:36 am
Forum: Personal Consumer Issues
Topic: How to evict skunk family living under shed?
Replies: 69
Views: 8227

Re: How to evict skunk family living under shed?

My neighbor had a sunk living under his shed many years ago. He called the town animal control. He came out and set a trap / cage by putting peanut butter on some bread in the trap. Several days latter the skunk was caught (Thanksgiving Day). The town animal control came back, threw a towel over the trap and carried the trap with the skunk inside to his truck. He was back in five minutes so he didn't take the skunk to far from here but it never came back. He said as long as you don't startle the skunk, it will not release the smell. He said he relocated skunks this way all the time. Not a job I would want!
by Retired2013
Sat Aug 12, 2023 8:30 am
Forum: Personal Finance (Not Investing)
Topic: inherited roth ira questions
Replies: 11
Views: 1351

Re: inherited roth ira questions

Just saw this article in the September Kiplinger Personal Finance Magazine. New Rules for Inherited IRAs.

https://www.kiplinger.com/retirement/re ... rited-iras
by Retired2013
Thu Jun 22, 2023 9:32 am
Forum: Personal Finance (Not Investing)
Topic: Home improvements budgeting
Replies: 35
Views: 2800

Re: Home improvements budgeting

Using a brick and mortar Kitchen & Bath. Reference from a co-worker that used them 10 years-ago only to find out later it's under NEW Management. Signed contract 1/31/22 for kitchen & powder room. Other than replacing all of the cabinets, we wanted to add a built-in sub-zero with panels. Project started 7/25/22 with a 6 week projected completion. Still not done. Turns out we have no control over the workers. Some of the workers that showed up, it was their first day on the job. If you had six months with the company, you were a long-term employee. I realize now that the employees that installed the showroom are long gone. Talking to the workers, they all say that it's the pay that made them join the company. However, they are more ...
by Retired2013
Thu Jun 22, 2023 8:21 am
Forum: Personal Finance (Not Investing)
Topic: Home improvements budgeting
Replies: 35
Views: 2800

Re: Home improvements budgeting

I am at the tail-end of a disastrous home reno and it has been one of the most stressful events of my life. I hope it goes better for you. +1 Started with an interior design store in fall 2019. Decided to stay (location, location, location) rather than build new, and down-size. Picking higher-end products knowing that we will not recoup the costs. Using a brick and mortar Kitchen & Bath. Reference from a co-worker that used them 10 years-ago only to find out later it's under NEW Management. Signed contract 1/31/22 for kitchen & powder room. Other than replacing all of the cabinets, we wanted to add a built-in sub-zero with panels. Project started 7/25/22 with a 6 week projected completion. Still not done. Turns out we have no contr...
by Retired2013
Tue Jun 20, 2023 6:16 am
Forum: Investing - Theory, News & General
Topic: SPIA: What Do You Think?
Replies: 91
Views: 9908

Re: SPIA: What Do You Think?

I've been looking at this for us and find it interesting IF we were to invest all tax-deferred (50% of funds) and keep all Roth funds (50% of funds) for whatever. Male 66, Female 65. Investment $1M Joint Life = $5,298 Joint, 25 year Certain $5,865 The 25 year has a 5.03% return. Stops paying at age 90. IMO, not bad since I don't see a lot of people living into their 90's and all my planning has one of us living to 100. If both of us pass before reaching 90, somebody will still inherent funds. The Joint Life compared to the 25 Year Certain means one of us needs to live to 96.25 / 97.25 (IMO doubtful). At least one of us would need to live to age 80.7 to recover the $1M outlay (probable). With the OP's amounts, I notice only a $55 monthly dif...
by Retired2013
Wed Jun 07, 2023 6:10 am
Forum: Personal Finance (Not Investing)
Topic: Should I appeal property tax?
Replies: 48
Views: 4892

Re: Should I appeal property tax?

In Massachusetts, to find if your house is properly valued, you'd find similar houses in the town and compare their features and appraisal to yours. So if you have a garage and the comp doesn't, you add to your house the value of a garage. I appealed my value once. I used 10 comps to show that my house was unfairly more highly valued than it should be compared to the comps. If you don't see that your house is unfairly valued compared to the comps, you have no reason to complain. Mass also does as NH. If house values doubled with the new appraisal, for example, the tax rate would be cut in half. +1 However, in our area, we must submit 3 comps and the comps must have sold within the past two years. You can download any of the data for the co...
by Retired2013
Fri Mar 31, 2023 6:29 am
Forum: Personal Consumer Issues
Topic: How long have you been in your current house?
Replies: 148
Views: 12555

Re: How long have you been in your current house?

30 yrs this week and hoping for another 20. We had the house built. Location, Location, Location.
by Retired2013
Fri Feb 03, 2023 1:40 pm
Forum: Personal Finance (Not Investing)
Topic: Take pay cut to begin path to retirement?
Replies: 23
Views: 2604

Re: Take pay cut to begin path to retirement?

- The idea behind not retiring today is 1) because as @homebuyer6426 mentioned, it's close (too close for our comfort level) and 2) @CoAndy to maintain health coverage for the 3 of us (I can't see how we'd keep expenses at 100k with the added expense of obtaining health care outside of employer-sponsored coverage). Now is a good time to learn how ACA works. The 2023 Federal Poverty Level (FPL) for a family of 3 is $23,030 For most states, if your FPL is less that 138% ($31,781) you get Medicaid. In NY, between 138% - 150% is free insurance. 149.9% for you would be $34,522 Between 150% - 200% is very cheap insurance. 199.9% for you would be $46,037 The MAGI is what your tax return needs to show. The difference $54k would then need to come f...
by Retired2013
Sun Jan 15, 2023 9:24 am
Forum: Personal Consumer Issues
Topic: Turbo Tax Question
Replies: 13
Views: 1130

Re: Turbo Tax Question

Yes, but you may want to fill in the information as if you were itemizing and TurboTax will automatically suggest whichever deduction nets you the most benefits, and if you have state taxes the itemized deductions from the Federal portion of your tax will fall into place for the state. Some folks skip itemizing and don't realize they can still take some itemized deductions against their state taxes Thanks for the thought but in CT the only thing I need to recognize is federally exempt municipal bond interest which is only partially derived from CT entities. I skipped the itemization for a couple years because I was using ACA and thought my Federal tax was $0 and state tax was $0. Then I just wanted the summery page to show how much propert...
by Retired2013
Sun Nov 06, 2022 8:09 am
Forum: Personal Consumer Issues
Topic: Neighbor's lawn service not adhering to property line
Replies: 108
Views: 13157

Re: Neighbor's lawn service not adhering to property line

In my experience, it is best to always err on the side of letting things go. I have been fortunate to always have great neighbors, but not perfect neighbors. But I am not perfect either... Examples: - I don't complain about my one neighbors dog occasionally running through the yard (does it really matter?) - I don't complain when my other neighbor let's their pool water drain across my lawn (unless my basement would flood) - They don't complain about my ugly woodpile against one of their yards or my more naturalized landscaping techniques - I did complain about a new neighbor moving into our neighborhood behind my house who clear cut an area designated as protected land, but he acted so quickly, that none of us had a chance to even meet th...
by Retired2013
Sun Nov 06, 2022 7:56 am
Forum: Personal Consumer Issues
Topic: Neighbor's lawn service not adhering to property line
Replies: 108
Views: 13157

Re: Neighbor's lawn service not adhering to property line

London, I am not sure what is wrong with getting some ideas here which have been really helpful and some - like putting up a low fence - might lead to the least conflict. To me it is good to get a reality check about how much to care about this and what to do about this before or if I take the next steps to speak with the neighbor or the lawn service. I have never had a dispute with a neighbor before and do check-in with neighbors in a friendly manner. Plus I had already had history with this neighbor which I briefly mentioned in my post. To elaborate - The neighbor had a history with me of not accepting the property line. From a discussion we had a year ago - showed where he was having bushes planted (which initially was past the property...
by Retired2013
Wed Oct 19, 2022 7:29 am
Forum: Personal Consumer Issues
Topic: Any way to buy a decent refrigerator these days?
Replies: 137
Views: 23634

Re: Any way to buy a decent refrigerator these days?

As silly as it sounds, I think there is a business case to make for a Sub Zero. It is a comical amount of money - but I had a 1989 Sub Zero in my NYC apartment that looked great still (front panel could be swapped out to update the look...) and it was made to be serviced. Had a few repairs, but it was modular, fixable and worth fixing. Even had it converted from R-12 (old ozone-depleting refrigerant) to newer R-410A. Just saw the listing for when that apartment changed hands again this summer - that fridge is still humming along. 33 years. I think you either buy the cheapest commodity fridge (GE, Samsung, LG, Whirpool, Frigidaire) and plan to throw it away every 5 to 7 years, or bite the bullet on a Sub Zero and take with you to the cemete...
by Retired2013
Tue Sep 27, 2022 10:55 am
Forum: Personal Finance (Not Investing)
Topic: Medicare Sign-up To Go Into Effect 1/1/24
Replies: 13
Views: 1349

Re: Medicare Sign-up To Go Into Effect 1/1/24

I just went on Medicare on Aug 1. When you signup, it doesn't take effect immediately. It went through a three step process. My Medicare was to start Aug 1. I signed up online on May 15th (I was going to signup on May 1 but waited two weeks thinking I had plenty of time). The SSA website had me sitting in step 1 for several weeks before it moved to step 2 where I sat until June 30. My Insurance company called me towards the end of May to tell me that my current plan was expiring and to not wait to apply for Medicare. I told them I had already applied. I was approved (step 3) for Medicare on June 30 but then I had to apply for the Advantage C plan, which is were my current insurance company came in. He was able to process all of the informat...
by Retired2013
Thu Sep 22, 2022 12:32 pm
Forum: Personal Consumer Issues
Topic: Timbertech Azek or Trex ? Hot? Which level of product for deckboard
Replies: 19
Views: 3864

Re: Timbertech Azek or Trex ? Hot? Which level of product for deckboard

We just did a 750 sqft TimberTech AZEK Weathered Teak $$$$ deck in full sun. During my testing, I found this was the only color / decking that I was able to walk on in my bear feet. I would have loved to go with a brown color but ever sample I laid out on the deck prior to selection was way to hot. The Weathered Teak was very similar to our siding so that was our choice. We picture framed the deck with AZEK Mahogany (2 boards) which was also a "cooler" decking but would burn our feet. Since the picture framing is mostly under the rails, we aren't walking on the Mahogany boards. Didn't really like the cost of the boards $$$$ but being able to walk on the deck in bear feet overrode the cost. Since the PVC boards are "warranty&q...
by Retired2013
Thu Sep 22, 2022 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: Input on Family Mortgage
Replies: 21
Views: 3042

Re: Input on Family Mortgage

I took a mtg loan with my mother some 30 years-ago. She was looking for a higher yield on her CD as rates were dropping. The rate we paid was the same as if we took the mtg from the bank, 10.5% :o Win! Win! She received a higher rate from the mgt, and we didn't have to pay closing costs other than the attorney fee to close the mtg and file it with the county. One problem we had with my mother would be that she held our checks for several months before going to the bank. Solution was that we would go to her bank and deposit the check into her checking acct. Another thing that was done each year was that we provided an amortization schedule reflecting the payments made for the year. We were prepaying the mtg so the amortization was changing w...
by Retired2013
Sat Sep 17, 2022 9:03 am
Forum: Personal Consumer Issues
Topic: Retiring to Upstate NY
Replies: 160
Views: 23949

Re: Retiring to Upstate NY

A couple of questions for those in the know: Can anyone speak to the areas outside of Albany: Clifton Park or HalfMoon? Just the general vibe, notable characteristics, etc. Also with respect to property taxation:? I ncome for STAR eligibility purpose is defined rather oddly: it is prior year Federal AGI minus any taxable IRA distributions. (So, in particular, Roth conversions and RMDs do not hurt eligibility for this credit as long as you are converting or distributing from a tIRA. Converting or taking a distribution directly from a tax-deferred 401k or 403b or 457, however, does affect eligibility.) If I understand this correctly, direct distributions that are not RMDs or not converted to a Roth, do not get added to AGI for purposes of de...
by Retired2013
Fri May 27, 2022 7:29 am
Forum: Personal Consumer Issues
Topic: Deck dilemma
Replies: 43
Views: 4372

Re: Deck dilemma

We rebuilt our deck last summer - there is a long thread here on BH. We went with Timbertech composite, mostly Tigerwood. Expensive, but worth it IMO. The 20 foot boards were just under $100 each, though they're likely higher now. Still worth it, though, IMO. We originally hoped we could just replace the decking/railing, reinforce the posts/beams/ledger and reuse the joists from our original 2005 deck. Every contractor who inspected the deck from underneath thought this was possible initially. But once we ripped off the boards it was obvious that the substructure was too far gone. The original owner of our house installed the deck incorrectly, the second owner of our house failed to maintain it properly and us (third owners) were left with...
by Retired2013
Wed Apr 27, 2022 12:44 pm
Forum: Personal Consumer Issues
Topic: Has anyone sued a contractor, won, AND collected money?
Replies: 40
Views: 6488

Re: Has anyone sued a contractor, won, AND collected money?

OP here, Well, I went to small claims court and won. The max in my state's county is 6k. So I paid the scumbag 7.5k and was awarded a judgement against his business and him personally for 6k. He claims he will pay me once the weather cooperates and he can work (yet I see other contractors working in the same weather, so I know it's just another excuse out of his mouth). He has been telling me since December 2021 that we will he refund me. My bank looked at the information on the back of the deposited check and told me "we don't know where he banks". The BBB is not much help as they told me "we can't force him to pay you". My states attorney general's office told me the same. "If he does not comply with our requests...
by Retired2013
Sun Apr 17, 2022 7:20 am
Forum: Personal Consumer Issues
Topic: Builder Quote for a new House
Replies: 29
Views: 3845

Re: Builder Quote for a new House

Foundation Basement: 8' High

If you are going to finish the basement, you might want to go 1 or 2 blocks higher. Something you can't do after the house is built. I added 2 blocks and the cost was really nothing in relations to the purchase price. I also added the plumbing in the basement floor for the basement powder room.
by Retired2013
Fri Mar 25, 2022 5:27 pm
Forum: Personal Finance (Not Investing)
Topic: How do you figure out how much to withdraw in retirment?
Replies: 8
Views: 1170

Re: How do you figure out how much to withdraw in retirment?

Say you pick a 4% annual withdraw rate from your portfolio, I understand you cant just take out 4% each year thereafter, its tethered to inflation but how do you do it? Say your retired in 2015 with a plan to withdraw 100K (4%) that year In Jan 2016 did you check the CPI ( I looked at Wikipedia but couldn't find the metric) for that prior year somewhere online? Whats the inflation metric you use and when is it released annually? Where at? Also, Is there a time its safe to reassess and give yourself a little raise based on portfolio performance and not just the annual inflation computation? Want an easy index? If you are collecting SS, every year they will send you a letter with the increase. Use that! The Social Security COLA is 5.9% for 2...
by Retired2013
Thu Mar 24, 2022 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Tax: New York (NY) State Refund Status: requires further review
Replies: 25
Views: 7569

Re: Tax: New York (NY) State Refund Status: requires further review

I filed 1/31/22 and the state return was rejected. Turns out the NYS has a new refundable tax credit for property tax refund of $250 - $350. Turbo Tax wasn't setup yet for the refund. The software was updated the next day and I submitted the return again. My NYS refund went from $0 to $350 which was a nice surprise. A couple of weeks later, I looked to see what the status was and I saw the same notice that it was received but under review. The refund was posted to my checking account on 3/17, so six weeks after filing. Thank you for the response @Retired2013. Before they posted the refund - did they ask you for any clarifying questions or indicate why it needed further review? Was your return straightforward or different/complex from previ...
by Retired2013
Thu Mar 24, 2022 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Tax: New York (NY) State Refund Status: requires further review
Replies: 25
Views: 7569

Re: Tax: New York (NY) State Refund Status: requires further review

samsoes wrote: Thu Mar 24, 2022 2:38 pm Always curious about this -- regarding "upstate," north of which town/city/county is considered by New Yorkers to be "upstate?"
No magical line. Downstate is around the Hudson Valley and south. IMO, HCOL = Downstate LCOL = Upstate

https://www.google.com/search?q=newyork ... e&ie=UTF-8
by Retired2013
Thu Mar 24, 2022 4:04 pm
Forum: Personal Finance (Not Investing)
Topic: Tax: New York (NY) State Refund Status: requires further review
Replies: 25
Views: 7569

Re: Tax: New York (NY) State Refund Status: requires further review

I filed 1/31/22 and the state return was rejected. Turns out the NYS has a new refundable tax credit for property tax refund of $250 - $350. Turbo Tax wasn't setup yet for the refund. The software was updated the next day and I submitted the return again. My NYS refund went from $0 to $350 which was a nice surprise.

A couple of weeks later, I looked to see what the status was and I saw the same notice that it was received but under review. The refund was posted to my checking account on 3/17, so six weeks after filing.
by Retired2013
Tue Mar 01, 2022 2:58 pm
Forum: Personal Consumer Issues
Topic: TV mounting — use Best Buy?
Replies: 19
Views: 5971

Re: TV mounting — use Best Buy?

I had BB install my tv last year. I was told that if they were just going straight up the wall, between the studs, from the lower outlet, they would do that. I needed to come across the studs so I need to hire an electrician. I then had to patch the drywall and paint before BB came to install the brackets and tv.
by Retired2013
Tue Mar 01, 2022 2:43 pm
Forum: Personal Investments
Topic: Trying to help parents with retirement plan
Replies: 33
Views: 4834

Re: Trying to help parents with retirement plan

"They recently sold their business and receive payments from that sale amounting to $4780/mo"

What kind of risk are those payments at? What's the source of the payments?
by Retired2013
Sun Feb 27, 2022 7:14 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversions in NY when over age 59.5 - Is $20K NY tax-free?
Replies: 32
Views: 3706

Re: Roth conversions in NY when over age 59.5 - Is $20K NY tax-free?

I read this $20k as the year of death only. Am I wrong? If the descendent did not claim his / her $20k exemption then it passes to the beneficiary only for that year? With the way the rule is worded, I can see how it might be interpreted that way. But if NY intended the beneficiary exclusion to apply to "the year of death only" then the instructions would have used that phrase or something similar. Also, applying the beneficiary exclusion to the year of death only wouldn't make much sense. Suppose an IRA owner dies in Oct. at age 63. There is no RMD for the year of death for the IRA owner or the beneficiary, but if the beneficiary decided to take a discretionary distribution in Nov or Dec of the year of death the exclusion would ...
by Retired2013
Sat Feb 26, 2022 8:27 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversions in NY when over age 59.5 - Is $20K NY tax-free?
Replies: 32
Views: 3706

Re: Roth conversions in NY when over age 59.5 - Is $20K NY tax-free?

I read this $20k as the year of death only. Am I wrong?

If the descendent did not claim his / her $20k exemption then it passes to the beneficiary only for that year?
by Retired2013
Fri Feb 25, 2022 9:07 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversions in NY when over age 59.5 - Is $20K NY tax-free?
Replies: 32
Views: 3706

Re: Roth conversions in NY when over age 59.5 - Is $20K NY tax-free?

Yes $20k per person (1099-R issued per person). You can take $20k and your spouse can take $20k for an exemption of $40k for NYS tax return. However, you will add to your Federal return.

If you add $20k to your Roth 401(k) and take make a IRA withdrawal, it's a wash entry for NYS taxes as long as you are 59.5 or older.
by Retired2013
Sat Jan 08, 2022 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: Trust for 86 year old?
Replies: 60
Views: 4695

Re: Trust for 86 year old?

Almost everything listed can be done by Beneficiary. No trust or probate for 99% of the items listed. Just make sure the beneficiaries are listed on all of the accounts including life insurance policies. Why would you want a trust for the car and jewlery? Just make sure you leave enough behind to pay the bills.
by Retired2013
Sat Dec 04, 2021 12:29 pm
Forum: Investing - Theory, News & General
Topic: Does Future Social Security Benefit Get COLA?
Replies: 40
Views: 4157

Re: Does Future Social Security Benefit Get COLA?

Just to throw a monkey wrench in to OP's thought exercise, if OP needs health coverage at 65, I suspect stopping to earn money from age 30 will not work. I believe there is some specific requirement for becoming eligible for Medicare. If they didn't have 10 years of working payments into medicare, they might have to pay a premium for the Medicare "Part A" coverage that those otherwise eligible have already paid into. I've had a question (that I haven't had answered), about Medicare disability coverage for someone that retired very early and later becomes disabled. In order to be eligible for social-security disability payments, one of the tests is for having had recent work (something like having 5 years worth of credits earned w...
by Retired2013
Mon Oct 18, 2021 12:10 pm
Forum: Personal Finance (Not Investing)
Topic: Medicaid eligibility lumpy income
Replies: 4
Views: 987

Re: Medicaid eligibility lumpy income

Only NY and MN elected the Basic Health Plan (BHP) option within the ACA. In NY, if your income is below 138% fpl, your on Medicaid. If your income is between 138% - 150%, you get the "Essential Plan" with no premiums or copays. If your income is between 150% - 200% fpl you get the "Essential Plan" with a $20 per person monthly premium and small copays but no deductibles, except $1 or 3$ for drugs. It looks like MN has a zero premuim if income stays below 160% fpl. With NY, at year end we receive a 1095-B for the healthcare so no reconciliation on the tax return. The "Essential Plan" runs December 1 - November 31 but is really a monthly program. Each year NY looks at our tax return for the prior year and if the...
by Retired2013
Sun Oct 10, 2021 6:59 am
Forum: Personal Consumer Issues
Topic: Lock in natural gas price for 2021-2022?
Replies: 81
Views: 7967

Re: Lock in natural gas price for 2021-2022?

My last bill has $0.45 per therm for gas. A year ago it was $0.20 so my bill is already showing a 100% increase for natural gas. If you look at natural gas history graph, it looks like every Nov. is the peak and then declines from there. I'll stay on a variable rate with my utility co.
by Retired2013
Wed Sep 22, 2021 8:34 am
Forum: Personal Finance (Not Investing)
Topic: Moving one spouse from ACA to Medicare (2021 vs 2018)
Replies: 38
Views: 5382

Re: Moving one spouse from ACA to Medicare (2021 vs 2018)

Question on when to call to cancel ACA. When do you call if the 1st is Monday? Do you call on Friday and technically you are uninsured over the weekend?
by Retired2013
Mon Sep 06, 2021 4:54 pm
Forum: Personal Investments
Topic: Fixed withdrawal from stable value fund to meet RMDs every year
Replies: 9
Views: 1573

Re: Fixed withdrawal from stable value fund to meet RMDs every year

It is a standard calculation on a financial calculator like an HP 12C or 17B, or online. Present value = current balance Future value = 15-20% of balance Annual interest rate = 4% Period = 30 years Solve for payment. Below is an online calculator. Click on PMT tab. Present value entered would be negative because it is a cash outflow. Future value would be a positive number because it is a cash inflow. Payment calculated will be positive because it is a cash inflow. https://www.calculator.net/finance-calculator.html I get $5515.56 for $100K balance, 4% interest, 30 years, $15K residue. This may not satisfy RMDs. You could compare to a SPIA annually and annuitize some or all if and when a SPIA is competitive with the calculated payout rate. ...
by Retired2013
Fri Jun 18, 2021 8:22 am
Forum: Personal Finance (Not Investing)
Topic: Dad's IRA - beneficiary/tax advice
Replies: 13
Views: 1353

Re: Dad's IRA - beneficiary/tax advice

Many variables with this.

Currently their combined RMD is about $50k plus two SS checks. If she receives the IRA and roles it into her account, her new RMD would be about $45k plus one SS check.

What happens if she lived to 90? She has 10 year of drawing down the IRA by RMD. You and your brother will then be in your mid 50s. Early retirement? You and your brother could then live / draw on the inherited IRA and be in a lower tax bracket?

Maybe mom should start gifting to each of you?

On the downside, if her health turns bad, she could end up in a nursing home and the funds all used up.
by Retired2013
Fri Jun 04, 2021 2:55 pm
Forum: Personal Investments
Topic: Results of my modeling out Roth conversions
Replies: 252
Views: 22442

Re: Results of my modeling out Roth conversions

You can contribute her $7k (age 50?) to the trad'l IRA and then do a $7k conversion on your account. Net = same NYS & Fed but grows her balance for later if you stay in NYS. The year you turn 59.5, make sure you take advantage of the $20k NYS pension exemption even if you are still working. I called it a shell game. Stop contributing $20k to a Roth and put in reg 401(k) or IRA and then convert $20k to generate the 1099-R which should save you 6% NYS tax of $1,200. Federal will be the same. It would be a prudent thing to do given that I may be living in NY. If I want to do that, I can recharacterize her Roth IRA contribution that I just did the other day. I can also for the next few years till I retire contribute to her trad'l IRA. It i...
by Retired2013
Fri Jun 04, 2021 2:24 pm
Forum: Personal Investments
Topic: Results of my modeling out Roth conversions
Replies: 252
Views: 22442

Re: Results of my modeling out Roth conversions

For the NYS $40k tax-deferred withdrawal, you must withdraw $20k from each spouses account, 1099-R in each name. I think I saw where your wife's tax deferred balance is only $45k? As such, you might want to build her tax-deferred account by contributing to a tax-deferred IRA rather than a Roth IRA. I'm doing the same thing for my wife's tax-deferred, trying to get the balance to grow so when she reaches 65 (after ACA), we can withdraw $20k from her account (goal $300k or 15 yrs of withdrawals) along with my withdrawals. Projection for us, $50 - $60k SS combined, $40k pension exemption plus $16k standard exemption. Total $116k and no NYS tax. Also Planning conversion up to $175k MAGI so NYS tax would be on $59k only,6% = $3,540. Don't need ...
by Retired2013
Fri Jun 04, 2021 1:35 pm
Forum: Personal Investments
Topic: Results of my modeling out Roth conversions
Replies: 252
Views: 22442

Re: Results of my modeling out Roth conversions

For the NYS $40k tax-deferred withdrawal, you must withdraw $20k from each spouses account, 1099-R in each name. I think I saw where your wife's tax deferred balance is only $45k? As such, you might want to build her tax-deferred account by contributing to a tax-deferred IRA rather than a Roth IRA. I'm doing the same thing for my wife's tax-deferred, trying to get the balance to grow so when she reaches 65 (after ACA), we can withdraw $20k from her account (goal $300k or 15 yrs of withdrawals) along with my withdrawals. Projection for us, $50 - $60k SS combined, $40k pension exemption plus $16k standard exemption. Total $116k and no NYS tax. Also Planning conversion up to $175k MAGI so NYS tax would be on $59k only,6% = $3,540. Don't need ...
by Retired2013
Fri Jun 04, 2021 12:54 pm
Forum: Personal Investments
Topic: Results of my modeling out Roth conversions
Replies: 252
Views: 22442

Re: Results of my modeling out Roth conversions

At $140K income, it would appear you still have some room in the nominal federal 22% bracket. Would you be paying a 22% (federal) marginal rate on some amount of Roth conversions done now, before retiring? If so, is it worth thinking about doing some modest Roth conversions now ... at a known 22% federal ... before retiring ... before the currently scheduled reversion to a 25% bracket in 2026? You might get more bang for the buck doing some modest Roth conversions at 22% now, rather than fiddling with small conversions in the SS tax hump after SS starts, for example? I can see a lot of things that would derail this from being a reasonable plan, but I thought I would toss the idea out there. Things that might derail it: - You are already sa...
by Retired2013
Fri Apr 23, 2021 11:24 am
Forum: Personal Finance (Not Investing)
Topic: Offered Severance Pkg.-Need advice.
Replies: 42
Views: 10370

Re: Offered Severance Pkg.-Need advice.

I'm curious about the "$10K in a HSA for COBRA". Doesn't this contradict with yearly maximum contribution of $3600 (single)/$7200 (family)? As far as I am aware the maximum encompasses BOTH company and employee contributions, so I don't see how a $10K contribution is possible. Thanks, I will look into this and get more details. 2. Single, no dependents (OK, 1 cat). 3. Diabetes as a pre-existing condition, but managed with no serious complications. 4. No, I would be staying on in my new position; however there's no guarantee that that won't change, perhaps in the near future, and I might not get offered the severance package. Since I can't actually do the work of 3.25 people, my future evaluations might not be as stellar as my las...