Search found 1933 matches

by gasdoc
Mon Aug 31, 2020 9:00 pm
Forum: Personal Finance (Not Investing)
Topic: What are the drawbacks to an Immediate Annuity (SPIA)?
Replies: 47
Views: 2965

Re: What are the drawbacks to an Immediate Annuity (SPIA)?

DW and I don’t have pensions so the lifetime steady payout aspect of an SPIA would be attractive to us if we had marginal retirement assets. However, our assets are not marginal and current returns are non competitive so ...... j🌺 Hello, Sandtrap, I have total respect for you and your advice on thi...
by gasdoc
Sun Aug 30, 2020 8:18 pm
Forum: Personal Finance (Not Investing)
Topic: What are the drawbacks to an Immediate Annuity (SPIA)?
Replies: 47
Views: 2965

Re: What are the drawbacks to an Immediate Annuity (SPIA)?

Teacher, are you still open to assistance? I noticed that none of the previous posts have explored just why a SPIA is generally a good buy, even in a low interest rate environment, and really how the insurance company is able to help the individual, despite the fee structure. First, recognize that t...
by gasdoc
Sun Aug 23, 2020 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: PPP loan forgiveness question
Replies: 12
Views: 1076

Re: PPP loan forgiveness question

My credit union is not yet accepting forgiveness applications.

gasdoc
by gasdoc
Sun Aug 23, 2020 7:14 am
Forum: Personal Finance (Not Investing)
Topic: Is a retirement planning certification worthwhile at age 60?
Replies: 11
Views: 1243

Re: Is a retirement planning certification worthwhile at age 60?

Anyone in the financial planning services that may be able to lend a thought? Thanks. gasdoc Not a current pro, but was in the financial services business for a time many years ago. Much of the landscape has changed, but after retirement briefly thought about getting back in as a Registered Investm...
by gasdoc
Sat Aug 22, 2020 10:05 pm
Forum: Personal Finance (Not Investing)
Topic: Is a retirement planning certification worthwhile at age 60?
Replies: 11
Views: 1243

Re: Is a retirement planning certification worthwhile at age 60?

Anyone in the financial planning services that may be able to lend a thought? Thanks. gasdoc Not a current pro, but was in the financial services business for a time many years ago. Much of the landscape has changed, but after retirement briefly thought about getting back in as a Registered Investm...
by gasdoc
Sat Aug 22, 2020 7:32 pm
Forum: Personal Finance (Not Investing)
Topic: Is a retirement planning certification worthwhile at age 60?
Replies: 11
Views: 1243

Re: Is a retirement planning certification worthwhile at age 60?

Anyone in the financial planning services that may be able to lend a thought? Thanks.

gasdoc
by gasdoc
Sat Aug 22, 2020 1:54 pm
Forum: Personal Finance (Not Investing)
Topic: Is a retirement planning certification worthwhile at age 60?
Replies: 11
Views: 1243

Re: Is a retirement planning certification worthwhile at age 60?

It is great that you are brainstorming your retirement options well before you plan on pulling the plug on your career. Thoughts: 1. Not sure that a retirement community is the best locale to open up a retirement planning business. After all, people are already retired there. 2. Not sure whether yo...
by gasdoc
Sat Aug 22, 2020 1:11 pm
Forum: Personal Finance (Not Investing)
Topic: Is a retirement planning certification worthwhile at age 60?
Replies: 11
Views: 1243

Is a retirement planning certification worthwhile at age 60?

I will be turning 60 this year, and am slowly winding down a medical career. I am not sure what I want to do in my "second act." I have always been interested in finance and retirement planning, and am wondering if that may be my "purpose," or my "service to others" in retirement. I have about two m...
by gasdoc
Mon Jul 27, 2020 7:16 am
Forum: Personal Finance (Not Investing)
Topic: Tax strategies
Replies: 7
Views: 1731

Re: Tax strategies

I agree that you shouldn't look at a defined benefits plan unless you have a stable, higher income. Also, I wouldn't do a defined benefit plan until you are within ten years of retirement.

gasdoc
by gasdoc
Sun Jul 26, 2020 7:01 am
Forum: Personal Finance (Not Investing)
Topic: Graph of how SS benefits can change with decreases in 2020 national wages for one born in 1960
Replies: 89
Views: 7085

Re: What the Heck, Reduced SS Benefits For Boomers Born In 1960 due to COVID

Since they are conceivably trying to give money to people who need/deserve it to stimulate the economy, perhaps they could just give us "60ers" an advance on the future Soc Sec benefit. I would be happy with the value of the future income stream in todays dollars, paid today. We could all use it to ...
by gasdoc
Sat Jul 25, 2020 5:54 am
Forum: Personal Finance (Not Investing)
Topic: Take the entire IRA SPIA (annuity) as income?
Replies: 44
Views: 1890

Re: Take the entire IRA SPIA (annuity) as income?

Well- I just purchased my first SPIA- actually a deferred income annuity, joint, with 67% going to the surviving spouse, and set to begin payouts in about 5 years. I feel neutral. DW, who is more conservative than me, feels really good about it. For me, it is an opportunity to invest more aggressiv...
by gasdoc
Fri Jul 24, 2020 8:58 pm
Forum: Personal Finance (Not Investing)
Topic: Take the entire IRA SPIA (annuity) as income?
Replies: 44
Views: 1890

Re: Take the entire IRA SPIA (annuity) as income?

Well- I just purchased my first SPIA- actually a deferred income annuity, joint, with 67% going to the surviving spouse, and set to begin payouts in about 5 years. I feel neutral. DW, who is more conservative than me, feels really good about it. For me, it is an opportunity to invest more aggressive...
by gasdoc
Fri Jul 24, 2020 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: Take the entire IRA SPIA (annuity) as income?
Replies: 44
Views: 1890

Re: Take the entire IRA SPIA (annuity) as income?

I'm curious. I assumed that using Roth funds to buy an SPIA would cause all the payments to be tax free, but perhaps I'm wrong. i believe an SPIA within a Roth IRA is tax free. Yes, that is my understanding as well. gasdoc Almost always tax free. Almost always penalty free. But there are a couple r...
by gasdoc
Fri Jul 24, 2020 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: Take the entire IRA SPIA (annuity) as income?
Replies: 44
Views: 1890

Re: Take the entire IRA SPIA (annuity) as income?

Dottie57 wrote: Fri Jul 24, 2020 12:03 pm
tj wrote: Thu Jul 23, 2020 8:03 pm I'm curious. I assumed that using Roth funds to buy an SPIA would cause all the payments to be tax free, but perhaps I'm wrong.
i believe an SPIA within a Roth IRA is tax free.
Yes, that is my understanding as well.

gasdoc
by gasdoc
Fri Jul 24, 2020 11:56 am
Forum: Personal Finance (Not Investing)
Topic: Take the entire IRA SPIA (annuity) as income?
Replies: 44
Views: 1890

Re: Take the entire IRA SPIA (annuity) as income?

So sorry! ... To clarify my original post, the SPIA matches my expected expenses in retirement. However, there may be years where I would rather take money from a Roth or from my taxable account rather than take the entire SPIA amount as income from the IRA annuity. Thanks for clarifying! gasdoc No...
by gasdoc
Fri Jul 24, 2020 10:45 am
Forum: Personal Finance (Not Investing)
Topic: Take the entire IRA SPIA (annuity) as income?
Replies: 44
Views: 1890

Re: Take the entire IRA SPIA (annuity) as income?

Would seem to me that one is buying way too much SPIA if this is a likely enough occurrence to happen often. Especially so if this is a concern beyond the first handful of years of the SPIA as living costs inflate. I'm not a forfeit the game type, though. I don't believe the above quote was for an ...
by gasdoc
Fri Jul 24, 2020 9:49 am
Forum: Personal Finance (Not Investing)
Topic: Take the entire IRA SPIA (annuity) as income?
Replies: 44
Views: 1890

Re: Take the entire IRA SPIA (annuity) as income?

Would seem to me that one is buying way too much SPIA if this is a likely enough occurrence to happen often. Especially so if this is a concern beyond the first handful of years of the SPIA as living costs inflate. I'm not a forfeit the game type, though. I don't believe the above quote was for an ...
by gasdoc
Fri Jul 24, 2020 9:15 am
Forum: Personal Finance (Not Investing)
Topic: Take the entire IRA SPIA (annuity) as income?
Replies: 44
Views: 1890

Re: Take the entire IRA SPIA (annuity) as income?

Would seem to me that one is buying way too much SPIA if this is a likely enough occurrence to happen often. Especially so if this is a concern beyond the first handful of years of the SPIA as living costs inflate. I'm not a forfeit the game type, though. I don't believe the above quote was for an ...
by gasdoc
Fri Jul 24, 2020 5:27 am
Forum: Personal Finance (Not Investing)
Topic: Take the entire IRA SPIA (annuity) as income?
Replies: 44
Views: 1890

Re: Take the entire IRA SPIA (annuity) as income?

gasdoc, Here is our planned approach (currently aged 69+66) to tax-deferred investments: We have evaluated annuities (100% to survivor) both level and inflation adjusted. We have also evaluated RMDs. Instead, each of us plan to take 30 year level payments from our tax-deferred investments beginning...
by gasdoc
Thu Jul 23, 2020 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: Take the entire IRA SPIA (annuity) as income?
Replies: 44
Views: 1890

Re: Take the entire IRA SPIA (annuity) as income?

Does anyone have an opinion on what the ideal % would be that would go to the surviving spouse? The fractions run from 50% to 100% after the first spouse passes. DW and I thought a 2/3 survivorship percentage would be fine, since expenses would drop after the first spouse passes. Thoughts or opinion...
by gasdoc
Thu Jul 23, 2020 8:10 pm
Forum: Personal Finance (Not Investing)
Topic: Take the entire IRA SPIA (annuity) as income?
Replies: 44
Views: 1890

Re: Take the entire IRA SPIA (annuity) as income?

tj wrote: Thu Jul 23, 2020 8:03 pm I'm curious. I assumed that using Roth funds to buy an SPIA would cause all the payments to be tax free, but perhaps I'm wrong.
Yes. distributions from a Roth IRA would be tax free.

gasdoc
by gasdoc
Thu Jul 23, 2020 8:07 pm
Forum: Personal Finance (Not Investing)
Topic: Take the entire IRA SPIA (annuity) as income?
Replies: 44
Views: 1890

Re: Take the entire IRA SPIA (annuity) as income?

rgs92 wrote: Thu Jul 23, 2020 5:49 pm Go here and try calling them:
https://www.fidelity.com/annuities/imme ... s/overview

(800-493-3004)
Just did, and got a quote for a joint annuity held within an IRA. He said one would have to take it as income when distributed.

gasdoc
by gasdoc
Thu Jul 23, 2020 5:34 pm
Forum: Personal Finance (Not Investing)
Topic: Take the entire IRA SPIA (annuity) as income?
Replies: 44
Views: 1890

Re: Take the entire IRA SPIA (annuity) as income?

As far as I know, the SPIA payments are always distributed as income and are reported in a 1099R as distributions. They do not exist within a container account like an IRA. I have never heard of this and the ones I have from major insurance companies never even presented this as a possiblity. I'm j...
by gasdoc
Thu Jul 23, 2020 5:32 pm
Forum: Personal Finance (Not Investing)
Topic: Take the entire IRA SPIA (annuity) as income?
Replies: 44
Views: 1890

Re: Take the entire IRA SPIA (annuity) as income?

rgs92 wrote: Thu Jul 23, 2020 5:26 pm You will have reported income on your 1099R for every monthly income distribution.
So is it not possible to have the distributions paid back into your IRA account- I guess as a rollover? Thanks.

gasdoc
by gasdoc
Thu Jul 23, 2020 5:23 pm
Forum: Personal Finance (Not Investing)
Topic: Take the entire IRA SPIA (annuity) as income?
Replies: 44
Views: 1890

Re: Take the entire IRA SPIA (annuity) as income?

As far as I know, the SPIA payments are always distributed as income and are reported in a 1099R as distributions. They do not exist within a container account like an IRA. I have never heard of this and the ones I have from major insurance companies never even presented this as a possiblity. I'm j...
by gasdoc
Thu Jul 23, 2020 5:20 pm
Forum: Personal Finance (Not Investing)
Topic: Take the entire IRA SPIA (annuity) as income?
Replies: 44
Views: 1890

Re: Take the entire IRA SPIA (annuity) as income?

I am planning to eventually purchase a SPIA (annuity) or deferred income annuity. Let's say I purchased a SPIA in a traditional or Roth IRA. Let's say also that in some years the SPIA throws off more income than is needed to pay expenses. Can the SPIA be designed to throw the income back into the t...
by gasdoc
Thu Jul 23, 2020 5:19 pm
Forum: Personal Finance (Not Investing)
Topic: Take the entire IRA SPIA (annuity) as income?
Replies: 44
Views: 1890

Re: Take the entire IRA SPIA (annuity) as income?

My brother-in-law Inherited an IRA from his brother this past year. A 10 year Annuity had been previously purchased within the IRA and the monthly payouts are deposited back into the IRA. The original owner would withdraw those funds monthly for living expenses and of course pay taxes on the distri...
by gasdoc
Thu Jul 23, 2020 2:59 pm
Forum: Personal Finance (Not Investing)
Topic: Take the entire IRA SPIA (annuity) as income?
Replies: 44
Views: 1890

Take the entire IRA SPIA (annuity) as income?

I am planning to eventually purchase a SPIA (annuity) or deferred income annuity. Let's say I purchased a SPIA in a traditional or Roth IRA. Let's say also that in some years the SPIA throws off more income than is needed to pay expenses. Can the SPIA be designed to throw the income back into the tr...
by gasdoc
Mon Jul 20, 2020 8:08 am
Forum: Personal Finance (Not Investing)
Topic: Trigger an estate tax by moving IRA before death?
Replies: 44
Views: 1719

Re: Trigger an estate tax by moving IRA before death?

Thanks everyone for the ideas and comments. I am still following closely.

gasdoc
by gasdoc
Mon Jul 20, 2020 8:02 am
Forum: Personal Finance (Not Investing)
Topic: Trigger an estate tax by moving IRA before death?
Replies: 44
Views: 1719

Re: Trigger an estate tax by moving IRA before death?

There was another interest post recently on Clever Things to do at End of Life. This would include addressing your Mom's IRA - if you convert it to a Roth, her heirs will not have to pay taxes at their tax bracket on that $50k. Not really much more work. https://www.bogleheads.org/forum/viewtopic.p...
by gasdoc
Sun Jul 19, 2020 8:06 pm
Forum: Personal Finance (Not Investing)
Topic: Trigger an estate tax by moving IRA before death?
Replies: 44
Views: 1719

Re: Trigger an estate tax by moving IRA before death?

On the face of it, it seems silly to have to file for a $5,000 cap gains, when the cap gains rate is "0," at her level of income anyway! If they were short terms gains they would be treated as ordinary income - but if one's AGI is below the standard deduction then the tax rate is indeed 0%. Having ...
by gasdoc
Sun Jul 19, 2020 7:37 pm
Forum: Personal Finance (Not Investing)
Topic: Trigger an estate tax by moving IRA before death?
Replies: 44
Views: 1719

Re: Trigger an estate tax by moving IRA before death?

The problem is that the IRS tax program does not know how much the gain is unless the sale is reported on the tax return. This is reinforced by the Pub 17 quote that you posted above, which says that "gross income includes gains... reported on Form 8949 or Schedule D." The gains cannot be reported ...
by gasdoc
Sun Jul 19, 2020 6:11 pm
Forum: Personal Finance (Not Investing)
Topic: Trigger an estate tax by moving IRA before death?
Replies: 44
Views: 1719

Re: Trigger an estate tax by moving IRA before death?

If your mom has large out-of-pocket medical expenses this year such that she can itemize the expenses that exceed 7.5% of her AGI and they are over the standard deduction ($12,400 + $1,300 (over 65) = $13,700), then tIRA withdrawals could cancel out these deductions and be tax-free. I may not have ...
by gasdoc
Sun Jul 19, 2020 3:58 pm
Forum: Personal Finance (Not Investing)
Topic: Trigger an estate tax by moving IRA before death?
Replies: 44
Views: 1719

Re: Trigger an estate tax by moving IRA before death?

Given $5,000 in capital gains, and an income of $3,000 and social security of <=$20,000, would I even have to file taxes after death for her as executor? Not for federal purposes. Don't know about state. In that situation, there may be a requirement to file a federal return. It depends on how the $...
by gasdoc
Sun Jul 19, 2020 3:08 pm
Forum: Personal Finance (Not Investing)
Topic: Trigger an estate tax by moving IRA before death?
Replies: 44
Views: 1719

Re: Trigger an estate tax by moving IRA before death?

I just discovered that Wisconsin, where Mom lives, does not have an estate tax, or an inheritance tax, or a tax on social security benefits, so from a state tax perspective, I would not have to file after she passes. Again, my conclusion is that I can avoid having to file for Mom, in Wisconsin, if I...
by gasdoc
Sun Jul 19, 2020 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: Trigger an estate tax by moving IRA before death?
Replies: 44
Views: 1719

Re: Trigger an estate tax by moving IRA before death?

FiveK wrote: Sun Jul 19, 2020 2:21 pm
gasdoc wrote: Sun Jul 19, 2020 2:10 pm Given $5,000 in capital gains, and an income of $3,000 and social security of <=$20,000, would I even have to file taxes after death for her as executor?
Not for federal purposes. Don't know about state.
Thanks, FiveK. If that is correct, I'll just leave it as it is!

gasdoc
by gasdoc
Sun Jul 19, 2020 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: Trigger an estate tax by moving IRA before death?
Replies: 44
Views: 1719

Re: Trigger an estate tax by moving IRA before death?

I would like to repost one question. Given $5,000 in capital gains, and an income of $3,000 and social security of <=$20,000, would I even have to file taxes after death for her as executor? She lives in another state, and I use a CPA for my own taxes. I would probably choose the route that lets me ...
by gasdoc
Sun Jul 19, 2020 2:00 pm
Forum: Personal Finance (Not Investing)
Topic: Trigger an estate tax by moving IRA before death?
Replies: 44
Views: 1719

Re: Trigger an estate tax by moving IRA before death?

The IRA is at Vanguard, and I know they can sometimes be difficult in dealing with non-routine issues. It's unlikely to make or break the beneficiaries no matter what you choose, but in a very similar situation (1 beneficiary instead of 2) Vanguard was the easiest and fastest broker for handling TO...
by gasdoc
Sun Jul 19, 2020 1:40 pm
Forum: Personal Finance (Not Investing)
Topic: Trigger an estate tax by moving IRA before death?
Replies: 44
Views: 1719

Re: Trigger an estate tax by moving IRA before death?

I'm far from an expert here, but if you closed the IRA, then as executor you'd be passing cash on to her beneficiaries. If you left it as an IRA, then couldn't they receive inherited IRAs? Do you know which would be the better for them tax-wise? Cheesebreath, my only reason for wanting to close out...
by gasdoc
Sun Jul 19, 2020 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: Trigger an estate tax by moving IRA before death?
Replies: 44
Views: 1719

Re: Trigger an estate tax by moving IRA before death?

I have moved her brokerage account assets (about $5,000 in LT capital gains) to her checking account. The only asset that remains out of her one remaining checking account is an IRA worth about $50,000. Her only income for the year, in addition to the $5,000 LT capital gains, would be about $3,000 ...
by gasdoc
Sun Jul 19, 2020 12:51 pm
Forum: Personal Finance (Not Investing)
Topic: Trigger an estate tax by moving IRA before death?
Replies: 44
Views: 1719

Trigger an estate tax by moving IRA before death?

I have a question I don't think I have ever seen posted here. I am the power of attorney for my mom, who is in hospice care, and will probably pass within the next couple of weeks. I am currently her durable power of attorney, and will be the executor of her will after she passes. To simplify her fi...
by gasdoc
Fri Jun 05, 2020 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: I want to contribute 100% on my small business 401k
Replies: 12
Views: 869

Re: I want to contribute 100% on my small business 401k

Monitoring. Thanks for posting. I am shutting down my defined benefit plan and opening a solo 401K at Fidelity. Agree with the earlier roster- Spirit Rider is a real expert.

gasdoc
by gasdoc
Sat May 30, 2020 6:41 am
Forum: Personal Finance (Not Investing)
Topic: CARES Act for college students?
Replies: 5
Views: 382

Re: CARES Act for college students?

I have 2 in college and have been waiting for both of those colleges to notify them about CARES Act. Half of the funding received by the colleges is supposed to go directly to students. We’ve heard nothing so far. Thanks. Interesting. The deadline our daughter was given is June 1. Not sure if that ...
by gasdoc
Fri May 29, 2020 5:06 pm
Forum: Personal Finance (Not Investing)
Topic: CARES Act for college students?
Replies: 5
Views: 382

Re: CARES Act for college students?

Bumping back to the top to see if there are any responses....

gasdoc
by gasdoc
Fri May 29, 2020 10:06 am
Forum: Personal Finance (Not Investing)
Topic: CARES Act for college students?
Replies: 5
Views: 382

CARES Act for college students?

https://money.com/college-emergency-grants-coronavirus/ Dear daughter received an email today from her small private college recommending she apply for a CARES grant for college students. They know she has not qualified in the past for any kind of financial aid based on need. She received the email ...
by gasdoc
Thu May 28, 2020 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k - elective deferral agreement question
Replies: 18
Views: 767

Re: Solo 401k - elective deferral agreement question

Can I open a Solo 401k now and rollover my existing IRA into it (between 10k-15k, from years ago back when I held a w2 job). Then I can begin making contributions throughout the year as finances allow, and at the end of the year if I contributed say, $14,500, I can just draft my Elective Deferral A...
by gasdoc
Thu May 28, 2020 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k - elective deferral agreement question
Replies: 18
Views: 767

Re: Solo 401k - elective deferral agreement question

HomeStretch wrote: Thu May 28, 2020 11:33 am Choose a Solo 401k provider that allows IRA rollovers in (Vanguard does not).
Fidelity would be the next best thing- that's where my new solo 401K is going.

gasdoc
by gasdoc
Thu May 28, 2020 11:10 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401k - elective deferral agreement question
Replies: 18
Views: 767

Re: Solo 401k - elective deferral agreement question

Following- thanks for posting... I am in the process of setting up a solo 401k also, for the first time.

gasdoc
by gasdoc
Thu May 28, 2020 11:03 am
Forum: Personal Finance (Not Investing)
Topic: Stimulus help for small businesses, sole proprietors, s-corp etc
Replies: 627
Views: 34679

Re: Stimulus help for small businesses, sole proprietors, s-corp etc

I applied for EIDL on April 2nd. Today I finally got an email saying they have it. Still no monies, but at least they have it. :oops: I guess it makes no difference since I got a PPP loan. Not sure of your exact situation and business. But I always recommend to take the EIDL so your are capitalized...
by gasdoc
Mon May 25, 2020 5:19 pm
Forum: Personal Finance (Not Investing)
Topic: Optimizing PPP Forgiveness
Replies: 352
Views: 25340

Re: Optimizing PPP Forgiveness

I think a helpful way of reading guidance is to take a step back and remember this is the Payroll Protection Program . It is not the Owner Compensation and Benefit Protection Program . It was designed to help small businesses keep their employees paid by paying for their payroll for 8 weeks, plus a...