WARNING There has been an increase in bots and spammers commenting on our videos. Sometimes the interactions may look real, but are easily identified by commenters promising high returns or promoting other 'advisors'. Please report these comments if you see them so we can keep our community safe from these scams. I will never try to contact you; you can only get in touch with me via the link in the description of the videos.
I saw that last question in your survey and realized I was in the rabbit hole! lol Great advice though, I will watch more videos, but it would seem you've pigeonholed yourself into your ideal customer. And that's fine, but if I do better than I expect, I may choose "manage my shit for me" (paraphrasing). lol
At 32, I'm diving into investing for the first time. I’ve started contributing to my 401K and opened a Roth IRA with automatic contributions. My main question is whether asset allocation is crucial at this stage or if I'm just overthinking as a beginner.
I completely agree-having a professional manage my investments has been invaluable. My job doesn’t allow time for in-depth stock analysis, so I entrusted an advisor with my portfolio. I’ve been fully invested since the COVID-19 outbreak, and I’m happy to say my portfolio has grown fivefold in just five years, reaching nearly $1 million.
Rebecca Lynne Buie has consistently been my top recommendation. She’s widely recognized for her expertise in financial markets and has a strong track record. I highly recommend her.
Thank you for the recommendation. I was curious, so I looked up Rebecca Lynne Buie online. Her consulting page came up at the top, and I’ve scheduled a call. I've heard about advisors before, but none have looked as impressive as she does.
Loved this video sir. I will retire with 2 pensions in addition to collecting SS. I have a 457 and Roths. I would love to see a tutorial on how I could minimize my taxes on the pensions as well.
I found myself in a low (10%) marginal tax rate bracket in 2024. Which means my LTCG tax rate (up to a point) was 0%. So I sold some Apple stock I've held for years for a $15k gain. All taxed at 0%. Then I rebought all the stock a few days later. If/when I eventually need to sell it in the future (say in retirement), I'll have less taxable gain to report.
Interesting and technically correct. A couple of "buts"... If your couple is 73 (or older) they will be subject to the RMD on their IRA. When they are 73 the RMD on $1M would be $36,500 (rounded). That would put them over $100k before they ever get to use the capital gain "trick". As they get older (than 73) and assuming they can maintain $1M in their IRA(s) the amount of the RMD will continue to rise. Second, to use the capital gain scenario they will be depleting their taxable investment account and it will be gone in just a few years to keep utilizing the strategy at which point they won't be able to maintain the $100K/year income level without withdrawing significantly more from their IRA.
I've heard people say Roth IRA is the way to go, but I also know most people over estimate their expenses after retirement. My thought is that if you have a much lower tax bracket at retirement, it would make more sense to use a traditional IRA to get more gains from time in the market with more funds rather than taking Roth post tax over the years.
I thought the tax system was complex while working. I had no idea the complexity increased exponentially after retiring. What the Hell?!? That explanation was mind numbing. And how much did Dave and Sandy have to pay their accountant to navigate through that mess? This country seriously needs to over haul the tax system and simplify it. This is nuts that this has so many levels of complexity.
I'm glad I'm not the only one. I just asked my parents this yesterday concerning complicated retirement tax planning. He (87 yrs old) was no help as he has been using a CPA for years. I guess I am going to have to find one soon.
@frankt7521 I'm not going to spend money to figure out how much money I have to give them. Going to use free tax software and let the chips fall where they may
*The tax code is written to benefit the rich that do not have "income" as a regular hourly worker does. The rich can invest, earn, and deduct to offset taxes.* *They can also set up entities to borrow money from that never need to be repaid (except interest... that they pay to themselves).*
It’s not that complicated 😂Your taxes go down to a flat rate that’s lower over 65 years old bc you no longer pay FICA as he shows within the first 3 minutes of the video. It’s very basic and easy to follow the example he gave.
Thanks for the great and inspiring video. I am confused on "provisional income". I see in our case for 2025 the rate is $44,000. So is it $44k of OTHER income (outside of society security) that you look at to determine if it's 85% taxable? thanks!
Sir, can everyone access the same application (ONE) that you used in your video to conduct multiple "what if" scenarios on their own? I ask because I will be pulling a pension in retirement that throws the numbers off.
I saw the title 'Holistiplan'. A google search states, "Holistiplan is an award-winning tax planning software solution for advisors. Built to systematize and automate the process of reviewing a client's tax return to uncover potential planning opportunities, Holistiplan was created and designed by co-founders, Roger Pine, CFA®, CFP®, and Kevin Lozer, CFP®."
Qualified dividens are taxed (often) at zero, but IRA distributions are not the same as qualified dividends. There will almost always be some part of IRA distributions that are not qualified dividens and therefore taxable. Line 1 on 1099-R will say how much is taxable.
Earnings on earnings within a Traditional IRA are not taxable. Only when you withdraw funds from the IRA is it taxable, and at Ordinary Income rates (not LTCG rates).
My Wife and I have a combined $110k/year in pension income. We're both retired and have an additional $2.2 mil in retirement savings ($1.0 mil Roth, $1.2 mil trad. IRA). We live in Texas and plan to stay here. We're both 60 years of age and retired. What can we do beyond converting $100k/yr over to Roth? We plan to take SS starting at age 70 unless we're diagnosed with a terminal illness. We're doing everything that we know of to avoid RMDs. Thank you!
Amazing and informative video. I think this is very good for people in their 60s. Is there any free softwares that let me play with the numbers? I’m still relatively new to taxes in my late 30s.
I’m assuming they never reinvested dividends in the brokerage account. Otherwise the brokerage withdrawal is not necessarily 50% capital gains. For me, I reinvest distributions and if I do FIFO, the cost basis of those early shares is very low so more than 50% would be capital gains.
according to this plan, you may be able to avoid paying taxes but wouldn't that change as soon as you start a Roth Conversion to offload the Pretax funds ( IRA ) for future tax benefits?
This works nicely until RMDs kick in, in this example only $10k was withdrawn. Assuming the IRA maintains the $600k, the first year of RMD will REQUIRE you to distribute $22k+ from your account. Still pretty low taxes though.
It seems like in this example they are already employing tax gain harvesting which is fine. But this example seems to illustrate to me that typically Roth conversions only benefit those with much higher retirement savings like at the $3million level where RMD could kick someone into a higher tax bracket. Too many investment advisors seem to push roth conversions for everyone when they are not necessary for most people. Maybe they are making this decision based upon the unknown expectation that taxes will be much higher when their clients reach 73 for RMDs.
I feel like there was supposed to be something else here. I saw no strategy in getting to 0% tax. The couple has SSI income, only a portion of which is taxable, dividend income which isn't taxed at all and an IRA distribution. None of this income is subject to Fica tax. The net taxable income is below their standard + over 65 deduction. This is just inevitable, not the result of any action or strategy. Certainly they should fill out the standard deduction by an IRA distribution as pointed out maybe starting to avoid a tax bomb by filling out the. %10 or %12 brackets doing a Roth conversion. Is that conversion the strategy?
This is exactly the comment I was going to make. All the numbers look impressive when there is a married couple. Single people get seriously ripped off by the tax code. It is totally unfair. And married people draw so much more from Social Security than single people, and that's really unfair too.
@@michaelgreen3036 ??????? My wife worked and draws her own check on her OWN account. ???? Because we are Married, we pay Taxes on SSA retirement. Since we draw on our OWN accounts, we should get the "Single rate" on SSA retirement.
I find is hard to believe that this example couple, with their assets and income, did not have any income from 1099-INT in your example. They have no cash accounts or CD's? Really?
Thanks ! They had no roth, 401k or HSA? They have a lot in a brokerage to have no 401 k or HSA. And you missed IRMA and medicare fees. But my question: will the IRA and brokerage grow daster than withdrawals so they get hit when they take RMDs? I think they would be better pushing his SS to 70 for longevity insurance for both of them, and pulling more from IRA, and rolling a little? Cheers
$100k of income is well below first IRMAAA bracket for a married couple. I addressed the lifetime tax problem and referenced another video where I do a full breakdown. Thanks for watching!
hi, thank you for that video. very informative. I have a question. lets say I am retired and my SSA $38K per year. my wife is still in working age and let say makes $200K a year. we file jointly all the time. moving forward do I need file separately. what is the your advise, will my SSI will be taxed because total income in high brackets...? may be you can make a video about such situation.
The problem with this approach is it only applies to married couples. Also, having a $1M retirement account means a compounding growing unpaid tax liability associated with it. Deferring it only makes sense if you’re planning to transfer it charity upon death.
I was able to follow this up until the lastbit about how the qualified dividends and capital gains rate reduced the tax to zero. Why? The capital gains zero tax rate was less than their taxable income, right? You lost me. This would probably be easier and simpler for me to understand if using a single person's income as an example, IMO.
Concerning brokerage accounts, I've seen that brokerage sales can be taxed at sale as long term capital gains (assuming they are more than a year in) but what about the relatively new 401k self directed brokerage, where your brokerage account is inside the 401k? Say you take the bulk of your assets at retirement and convert them to 1 month brokerage CDs, if you withdraw the interest only over the year, that would be taxed as income rather than a capital gains since it is behind a 401k, correct? Or perhaps you leave them in the underlying "held for more than one year" asset, and sell them. I assume being in a 401k makes then income funds? Or are they long term capital gains? I can see how a one month CD could be a short term capital gain. But if it was in a 401k, does it get super ceded to income?
@@onedegreeadvisors 9:45 - 10:20 you refer to the total proceeds of the sale from a taxable brokerage account as "income". By that definition, if they had invested $1M is a fund that lost 5%, they could sell it and generate $950,000 in tax-free "income".
$100k is easy. You don’t need to be retired. Standard deduction plus HSA and FSA, 2 max 401ks, 2 max IRAs, cap loss and pre tax deductions for healthcare are way more than $100k.
Sorry to burst your criticism bubble but you can absolutely have both a deductible 401k and IRA. There are income limitations for it to qualify. The benefit starts to decrease for married couples at $123k of income (although a non working spouse can still get a deduction using your income up to $230k). As far as an FSA you can have both with the HSA covering items not covered by your medical plan, for example dental. Maybe do your research next time before starting a response with incorrect. Apology accepted.
Question about the income threshold for long term capital gains tax rate. Once you hit that threshold, are all LTG taxed at the higher rate? Or is it marginal like with ordinary income?
Hi great video but most people just have a 401K or IRA (not a brokerage) can u do a video where 2 people are getting SS and they have a 401K of 500,000 as an example or maybe one with SS and a 1 million 401K
Not the same video, but I did make one on strategies for dealing with all pretax. You can check that out here: th-cam.com/video/5w5_e5wzzCE/w-d-xo.htmlsi=G-73FmWQ9ufaNTxH
Also, here's a great question, assuming you retire at 55, can you still pay FICA (as an individual and not from an employer handling it) in order to ensure your SS is the same as the assumption that you keep working through at least 62?
Also, Social Security benefits are calculated using only the 35 years with the highest earnings (adjusted for inflation). So if you had high income from say age 21-55, additional earnings from age 56-62 might not increase your benefits. The SS website should let you view your earnings history.
Because too many advisors simply push ROTH conversions without doing any tax modeling or scare their clients into the "Taxes will be much higher when you are 73 narrative" . Most retirees don't need ROTH conversions unless they have very large IRA accounts, and even then if they are extremely large even a ROTH conversion will not help because they will still be in the highest tax bracket. Luckily most of us don't need to have that worry. lol
I am lost! My accountant had made me to increase my social security withholdings so I don’t have to pay taxes! I do not have income between me and my wife more than 70k and still pay taxes?
How is that possible? We make 100,000 a year. No W2 . All social security and pension plus some interest . After taking 32000 standard deduction, 68000 thousand is taxable with 12% bracket. How can it be tax 0? I do my own tax every by following the rules. I don't understand you say 0 please explain! Thanks!
The title is a bit misleading. You should title this with the addition of “when your income is largely SS “ With a military and OPM retirement and little SS, doubt there is a way to eliminate taxes even if making far less per year.
im 66, social security income is $4,800 FOR ENTIRE YEAR! its actually less. I JUST INHERITED AN IRA FROM MY FATHER! 1180 SHARES OF STOCK WORTH JUST AROUND $100,000. i want to make a big draw to buy a small home, and offset the taxes by installing solar to get 30% tax credit. maybe you can answer a question. since the wealth management company that holds the ira is 3 whole states away from where i live. (ira account is in arkansas and i live in south dakota) is my lawyer in arkansas legally able to open the account for me to have the stock and cash transfered to my account? ive been disabled for over 20 years, was on SSI until i inherited from my mom. later because of marriage my family income was too high to get any money. when i filed for social security and got divorced i was given SSI as elderly low income. BUT IM STILL DISABLED DAMMIT!
Call your lawyer NOW and ask all of these questions and if he doesn't know he can give you a direction to call someone else that's an expert in this situation.
WARNING There has been an increase in bots and spammers commenting on our videos. Sometimes the interactions may look real, but are easily identified by commenters promising high returns or promoting other 'advisors'. Please report these comments if you see them so we can keep our community safe from these scams. I will never try to contact you; you can only get in touch with me via the link in the description of the videos.
They have nothing else to do.
You are the first person I’ve seen actually addressing/ acknowledging this problem.
@@whogirl104Minority Mindset also addressed this problem as well.Glad to see as least some You Tubers are.
I saw that last question in your survey and realized I was in the rabbit hole! lol Great advice though, I will watch more videos, but it would seem you've pigeonholed yourself into your ideal customer. And that's fine, but if I do better than I expect, I may choose "manage my shit for me" (paraphrasing). lol
At 32, I'm diving into investing for the first time. I’ve started contributing to my 401K and opened a Roth IRA with automatic contributions. My main question is whether asset allocation is crucial at this stage or if I'm just overthinking as a beginner.
There are so many choices to make, and for beginners, it's often best to entrust daily investment decisions to an experienced advisor.
I completely agree-having a professional manage my investments has been invaluable. My job doesn’t allow time for in-depth stock analysis, so I entrusted an advisor with my portfolio. I’ve been fully invested since the COVID-19 outbreak, and I’m happy to say my portfolio has grown fivefold in just five years, reaching nearly $1 million.
How can I find a trusted financial planner like yours?
Rebecca Lynne Buie has consistently been my top recommendation. She’s widely recognized for her expertise in financial markets and has a strong track record. I highly recommend her.
Thank you for the recommendation. I was curious, so I looked up Rebecca Lynne Buie online. Her consulting page came up at the top, and I’ve scheduled a call. I've heard about advisors before, but none have looked as impressive as she does.
Nice video. It just goes to show that planning for withdrawals is as important as saving for retirement. If you do it wrong a lot can go to taxes.
Very true! Thanks for watching.
Loved this video sir. I will retire with 2 pensions in addition to collecting SS. I have a 457 and Roths. I would love to see a tutorial on how I could minimize my taxes on the pensions as well.
With the new law that was just passed you also will get your full social security income so congratulations to you! 🎉
I found myself in a low (10%) marginal tax rate bracket in 2024. Which means my LTCG tax rate (up to a point) was 0%. So I sold some Apple stock I've held for years for a $15k gain. All taxed at 0%. Then I rebought all the stock a few days later. If/when I eventually need to sell it in the future (say in retirement), I'll have less taxable gain to report.
Interesting and technically correct. A couple of "buts"... If your couple is 73 (or older) they will be subject to the RMD on their IRA. When they are 73 the RMD on $1M would be $36,500 (rounded). That would put them over $100k before they ever get to use the capital gain "trick". As they get older (than 73) and assuming they can maintain $1M in their IRA(s) the amount of the RMD will continue to rise. Second, to use the capital gain scenario they will be depleting their taxable investment account and it will be gone in just a few years to keep utilizing the strategy at which point they won't be able to maintain the $100K/year income level without withdrawing significantly more from their IRA.
I addressed this problem 12:47
I've heard people say Roth IRA is the way to go, but I also know most people over estimate their expenses after retirement. My thought is that if you have a much lower tax bracket at retirement, it would make more sense to use a traditional IRA to get more gains from time in the market with more funds rather than taking Roth post tax over the years.
I thought the tax system was complex while working. I had no idea the complexity increased exponentially after retiring. What the Hell?!? That explanation was mind numbing. And how much did Dave and Sandy have to pay their accountant to navigate through that mess? This country seriously needs to over haul the tax system and simplify it. This is nuts that this has so many levels of complexity.
They will never overhaul it! People would revolt if they understood how the government is screwing them!
I'm glad I'm not the only one. I just asked my parents this yesterday concerning complicated retirement tax planning. He (87 yrs old) was no help as he has been using a CPA for years. I guess I am going to have to find one soon.
@frankt7521 I'm not going to spend money to figure out how much money I have to give them. Going to use free tax software and let the chips fall where they may
*The tax code is written to benefit the rich that do not have "income" as a regular hourly worker does. The rich can invest, earn, and deduct to offset taxes.*
*They can also set up entities to borrow money from that never need to be repaid (except interest... that they pay to themselves).*
It’s not that complicated 😂Your taxes go down to a flat rate that’s lower over 65 years old bc you no longer pay FICA as he shows within the first 3 minutes of the video.
It’s very basic and easy to follow the example he gave.
Thanks for the great and inspiring video. I am confused on "provisional income". I see in our case for 2025 the rate is $44,000. So is it $44k of OTHER income (outside of society security) that you look at to determine if it's 85% taxable? thanks!
Hi, do you ever address federal retirees on pensions (not SS). Thank you
Sir, can everyone access the same application (ONE) that you used in your video to conduct multiple "what if" scenarios on their own? I ask because I will be pulling a pension in retirement that throws the numbers off.
What is the tax planning software you are using?
You mind sharing what software you are using?
Probably proprietary as the report name matches the website.
I saw the title 'Holistiplan'. A google search states, "Holistiplan is an award-winning tax planning software solution for advisors. Built to systematize and automate the process of reviewing a client's tax return to uncover potential planning opportunities, Holistiplan was created and designed by co-founders, Roger Pine, CFA®, CFP®, and Kevin Lozer, CFP®."
Qualified dividens are taxed (often) at zero, but IRA distributions are not the same as qualified dividends. There will almost always be some part of IRA distributions that are not qualified dividens and therefore taxable. Line 1 on 1099-R will say how much is taxable.
Dividends paid within an IRA are not taxable/reportable
Dividends on stock that is held in IRA stocks are taxable…..
Taxable when put in my bank to spend
Earnings on earnings within a Traditional IRA are not taxable. Only when you withdraw funds from the IRA is it taxable, and at Ordinary Income rates (not LTCG rates).
My Wife and I have a combined $110k/year in pension income. We're both retired and have an additional $2.2 mil in retirement savings ($1.0 mil Roth, $1.2 mil trad. IRA). We live in Texas and plan to stay here. We're both 60 years of age and retired. What can we do beyond converting $100k/yr over to Roth? We plan to take SS starting at age 70 unless we're diagnosed with a terminal illness. We're doing everything that we know of to avoid RMDs. Thank you!
Amazing and informative video. I think this is very good for people in their 60s. Is there any free softwares that let me play with the numbers? I’m still relatively new to taxes in my late 30s.
Hopefully this is a simple question but how is their provisional income allowing 63K of SS to show as zero income?
I’m assuming they never reinvested dividends in the brokerage account. Otherwise the brokerage withdrawal is not necessarily 50% capital gains. For me, I reinvest distributions and if I do FIFO, the cost basis of those early shares is very low so more than 50% would be capital gains.
Awesome video.
Good video! What is the software you use to run these analysis?
What software are you using?
according to this plan, you may be able to avoid paying taxes but wouldn't that change as soon as you start a Roth Conversion to offload the Pretax funds ( IRA ) for future tax benefits?
This works nicely until RMDs kick in, in this example only $10k was withdrawn. Assuming the IRA maintains the $600k, the first year of RMD will REQUIRE you to distribute $22k+ from your account. Still pretty low taxes though.
It seems like in this example they are already employing tax gain harvesting which is fine. But this example seems to illustrate to me that typically Roth conversions only benefit those with much higher retirement savings like at the $3million level where RMD could kick someone into a higher tax bracket. Too many investment advisors seem to push roth conversions for everyone when they are not necessary for most people. Maybe they are making this decision based upon the unknown expectation that taxes will be much higher when their clients reach 73 for RMDs.
I feel like there was supposed to be something else here. I saw no strategy in getting to 0% tax. The couple has SSI income, only a portion of which is taxable, dividend income which isn't taxed at all and an IRA distribution. None of this income is subject to Fica tax. The net taxable income is below their standard + over 65 deduction. This is just inevitable, not the result of any action or strategy. Certainly they should fill out the standard deduction by an IRA distribution as pointed out maybe starting to avoid a tax bomb by filling out the. %10 or %12 brackets doing a Roth conversion. Is that conversion the strategy?
Conversion is not the strategy - but I discuss the potential tax bomb with a strategy like
Why do you people always list the married couple only.
You always ignore the Singles
Case study of a single person: th-cam.com/video/gm3C84MqdZw/w-d-xo.html
This is exactly the comment I was going to make. All the numbers look impressive when there is a married couple. Single people get seriously ripped off by the tax code. It is totally unfair. And married people draw so much more from Social Security than single people, and that's really unfair too.
@@michaelgreen3036 They split housing and utilities etc etc.
@@michaelgreen3036
???????
My wife worked and draws her own check on her OWN account.
???? Because we are Married, we pay Taxes on SSA retirement.
Since we draw on our OWN accounts, we should get the "Single rate" on SSA retirement.
I find is hard to believe that this example couple, with their assets and income, did not have any income from 1099-INT in your example. They have no cash accounts or CD's? Really?
Thanks ! They had no roth, 401k or HSA? They have a lot in a brokerage to have no 401 k or HSA. And you missed IRMA and medicare fees. But my question: will the IRA and brokerage grow daster than withdrawals so they get hit when they take RMDs? I think they would be better pushing his SS to 70 for longevity insurance for both of them, and pulling more from IRA, and rolling a little?
Cheers
$100k of income is well below first IRMAAA bracket for a married couple. I addressed the lifetime tax problem and referenced another video where I do a full breakdown. Thanks for watching!
hi, thank you for that video. very informative. I have a question. lets say I am retired and my SSA $38K per year. my wife is still in working age and let say makes $200K a year. we file jointly all the time. moving forward do I need file separately. what is the your advise, will my SSI will be taxed because total income in high brackets...? may be you can make a video about such situation.
What tax software do you use?
The problem with this approach is it only applies to married couples. Also, having a $1M retirement account means a compounding growing unpaid tax liability associated with it. Deferring it only makes sense if you’re planning to transfer it charity upon death.
I addressed this in the video.
I was able to follow this up until the lastbit about how the qualified dividends and capital gains rate reduced the tax to zero. Why? The capital gains zero tax rate was less than their taxable income, right? You lost me. This would probably be easier and simpler for me to understand if using a single person's income as an example, IMO.
In short, in the 10% and most of the 12% tax brackets, LTCG are taxed at 0%. If you're in say a 22% tax bracket, LTCG are taxed at 15%.
Concerning brokerage accounts, I've seen that brokerage sales can be taxed at sale as long term capital gains (assuming they are more than a year in) but what about the relatively new 401k self directed brokerage, where your brokerage account is inside the 401k? Say you take the bulk of your assets at retirement and convert them to 1 month brokerage CDs, if you withdraw the interest only over the year, that would be taxed as income rather than a capital gains since it is behind a 401k, correct? Or perhaps you leave them in the underlying "held for more than one year" asset, and sell them. I assume being in a 401k makes then income funds? Or are they long term capital gains? I can see how a one month CD could be a short term capital gain. But if it was in a 401k, does it get super ceded to income?
Can you do this on a widower
Why do you consider recovery of basis as income?
Where in the video do I do that?
@@onedegreeadvisors 9:45 - 10:20 you refer to the total proceeds of the sale from a taxable brokerage account as "income". By that definition, if they had invested $1M is a fund that lost 5%, they could sell it and generate $950,000 in tax-free "income".
$100k is easy. You don’t need to be retired. Standard deduction plus HSA and FSA, 2 max 401ks, 2 max IRAs, cap loss and pre tax deductions for healthcare are way more than $100k.
Sure, if you want no actual spendable income and have large cap losses every year, lol.
Sorry to burst your criticism bubble but you can absolutely have both a deductible 401k and IRA. There are income limitations for it to qualify. The benefit starts to decrease for married couples at $123k of income (although a non working spouse can still get a deduction using your income up to $230k). As far as an FSA you can have both with the HSA covering items not covered by your medical plan, for example dental. Maybe do your research next time before starting a response with incorrect. Apology accepted.
I mean an FSA covering dental
Your title should qualify 0 tax federally because many states still have state taxes
Question about the income threshold for long term capital gains tax rate. Once you hit that threshold, are all LTG taxed at the higher rate? Or is it marginal like with ordinary income?
They are progressive like ordinary income
Hi great video but most people just have a 401K or IRA (not a brokerage) can u do a video where 2 people are getting SS and they have a 401K of 500,000 as an example or maybe one with SS and a 1 million 401K
Not the same video, but I did make one on strategies for dealing with all pretax. You can check that out here: th-cam.com/video/5w5_e5wzzCE/w-d-xo.htmlsi=G-73FmWQ9ufaNTxH
@@onedegreeadvisors Thanks!
@@onedegreeadvisors we will be 62 next year great video for us
Glad to hear! Hope you enjoy it!
Also, here's a great question, assuming you retire at 55, can you still pay FICA (as an individual and not from an employer handling it) in order to ensure your SS is the same as the assumption that you keep working through at least 62?
FICA is only paid in on earnings, either as an employee or self-employed. Employer and employee each pay 1/2. Self employed pay in both 1/2's.
Also, Social Security benefits are calculated using only the 35 years with the highest earnings (adjusted for inflation). So if you had high income from say age 21-55, additional earnings from age 56-62 might not increase your benefits. The SS website should let you view your earnings history.
Wait, $100,000 tax-free in retirement WITHOUT a Roth IRA? This sounds like magic-how is this not talked about more? 🤯
Because too many advisors simply push ROTH conversions without doing any tax modeling or scare their clients into the "Taxes will be much higher when you are 73 narrative" . Most retirees don't need ROTH conversions unless they have very large IRA accounts, and even then if they are extremely large even a ROTH conversion will not help because they will still be in the highest tax bracket. Luckily most of us don't need to have that worry. lol
I am lost! My accountant had made me to increase my social security withholdings so I don’t have to pay taxes! I do not have income between me and my wife more than 70k and still pay taxes?
Sounds like they recommended you withhold to avoid owing when you file. Might be a good question to ask them!
How is that possible? We make 100,000 a year. No W2 . All social security and pension plus some interest
. After taking 32000 standard deduction, 68000 thousand is taxable with 12% bracket. How can it be tax 0? I do my own tax every by following the rules. I don't understand you say 0 please explain! Thanks!
Pension and SS cannot take advantage of qualified dividends and capital gains tax rates. (I'm in the same situation as you are.)
@commonsense6967 Thank you for answering me.
The title is a bit misleading. You should title this with the addition of “when your income is largely SS “
With a military and OPM retirement and little SS, doubt there is a way to eliminate taxes even if making far less per year.
The same principles apply
@ principles yes, end result no. Your video is only meaningful to those with large SS retirements.
im 66, social security income is $4,800 FOR ENTIRE YEAR! its actually less. I JUST INHERITED AN IRA FROM MY FATHER! 1180 SHARES OF STOCK WORTH JUST AROUND $100,000. i want to make a big draw to buy a small home, and offset the taxes by installing solar to get 30% tax credit.
maybe you can answer a question. since the wealth management company that holds the ira is 3 whole states away from where i live. (ira account is in arkansas and i live in south dakota) is my lawyer in arkansas legally able to open the account for me to have the stock and cash transfered to my account?
ive been disabled for over 20 years, was on SSI until i inherited from my mom. later because of marriage my family income was too high to get any money. when i filed for social security and got divorced i was given SSI as elderly low income. BUT IM STILL DISABLED DAMMIT!
Call your lawyer NOW and ask all of these questions and if he doesn't know he can give you a direction to call someone else that's an expert in this situation.
Something to do your software. Otherwise it is not possible.
Hi
70 yrs old with 4 minor children, CTC= $8K
$100K= $0 taxes