Agree that the Roth IRA withdrawals themselves are not taxable income, the question is about the fairness of whether or not the withdrawn amount should be included in the IRMA and SS taxability calculations.
I agree with your logic, Roth IRA withdrawals are certainly income when it is withdrawn and should be included in MAGI calculations for determining IRMA and SS taxability!
I hope that our Kaiser Permanente LA and Orange County Senior Advantage Medicare Plan doesn't ever terminate because both my wife and I absolutely love it, and we highly recommend his wonderful non-profit health care organization to everyone who lives in their service area.
Richard: This was my goal as well: "it’s 100% of the income YOU WERE ACTUALLY LIVING ON day to day before you retired." Not the gross combined income that my wife and I were earning when we retired, but instead the (now) yearly inflation-adjusted pre-tax amount that we were actually spending at retirement, which reflected the way we actually live, including our normal spending patterns, taking yearly vacation trips, etc. It has worked out very well for us after being retired now for 16 years (I retired at age 65 and my wife retired a year later at age 62).
My wife and I fit your description as we are taking our RMDs (which requires liquidating mutual funds) and spending most of the proceeds for living expenses. Our heirs will inherit the remaining mutual fund balances when we pass away, so those funds might remain invested in stock/bonds. It would interesting to know what the estimate is of how much of Boomer wealth IS invested in equities that WILL be liquidated over the next 30 years to fund retirements. Will it be large enough to negatively affect (suppress) stock prices over that period of time??
I can identify with this story, but on a smaller scale.
Buying clothes, handbags and shoes makes my wife happy and she looks wonderful in the pretty and stylish things that she buys.
It does concern me, however, that she has given many items to Goodwill over the years that still have the sales tags on them! Ugh.
I am not without my own "faults" in this regard, however, as I presently have collected approximately 80 1/48 and 1/72 diecast metal modern military fighter jet models in the last 11 years (I am 81) that I absolutely love! I spend several hours of most days admiring them.
It makes me sad that I know that I must sell my beloved model airplane collection in the next few years ($ for my heirs) in order to prepare for my "last flight into the great beyond."
My wife and I did the same thing as you both did. She is 4 years younger than me and started taking her SS benefit at age 62 in 2011. At the same time, I claimed ONLY my spousal benefit at age 66 (I retired the previous year at age 65) so collected benefits on her earnings record for 4 years. Then in 2015 I claimed MY SS benefit at age 75 for a full 32% more than my FRA benefit amount! I am 81 now am very happy that my wife will collect my 4-year delayed SS benefit as her survivor benefit when I precede her in death, whenever that happens. :-)
Comments
Agree that the Roth IRA withdrawals themselves are not taxable income, the question is about the fairness of whether or not the withdrawn amount should be included in the IRMA and SS taxability calculations.
Post: Income taxes on retirees with Social Security
Link to comment from August 15, 2026
I agree with your logic, Roth IRA withdrawals are certainly income when it is withdrawn and should be included in MAGI calculations for determining IRMA and SS taxability!
Post: Income taxes on retirees with Social Security
Link to comment from August 15, 2026
I hope that our Kaiser Permanente LA and Orange County Senior Advantage Medicare Plan doesn't ever terminate because both my wife and I absolutely love it, and we highly recommend his wonderful non-profit health care organization to everyone who lives in their service area.
Post: Medicare Advantage Part C — Not too soon to start planning for 2027
Link to comment from August 12, 2026
Richard: This was my goal as well: "it’s 100% of the income YOU WERE ACTUALLY LIVING ON day to day before you retired." Not the gross combined income that my wife and I were earning when we retired, but instead the (now) yearly inflation-adjusted pre-tax amount that we were actually spending at retirement, which reflected the way we actually live, including our normal spending patterns, taking yearly vacation trips, etc. It has worked out very well for us after being retired now for 16 years (I retired at age 65 and my wife retired a year later at age 62).
Post: What is the right percentage?
Link to comment from August 10, 2026
My wife and I fit your description as we are taking our RMDs (which requires liquidating mutual funds) and spending most of the proceeds for living expenses. Our heirs will inherit the remaining mutual fund balances when we pass away, so those funds might remain invested in stock/bonds. It would interesting to know what the estimate is of how much of Boomer wealth IS invested in equities that WILL be liquidated over the next 30 years to fund retirements. Will it be large enough to negatively affect (suppress) stock prices over that period of time??
Post: The Market’s Unpredictability
Link to comment from June 13, 2026
I think your last paragraph is spot on!
Post: Would You Be Miserable?
Link to comment from June 9, 2026
FYI (from my youth): I LOVE Twinkies!!
Post: Would You Be Miserable?
Link to comment from June 9, 2026
I can identify with this story, but on a smaller scale. Buying clothes, handbags and shoes makes my wife happy and she looks wonderful in the pretty and stylish things that she buys. It does concern me, however, that she has given many items to Goodwill over the years that still have the sales tags on them! Ugh. I am not without my own "faults" in this regard, however, as I presently have collected approximately 80 1/48 and 1/72 diecast metal modern military fighter jet models in the last 11 years (I am 81) that I absolutely love! I spend several hours of most days admiring them. It makes me sad that I know that I must sell my beloved model airplane collection in the next few years ($ for my heirs) in order to prepare for my "last flight into the great beyond."
Post: The Ping
Link to comment from June 5, 2026
Oops, I claimed MY SS benefit in 2015 at age 70, not age 75.
Post: Rethinking the “Right” Time for Social Security
Link to comment from April 23, 2026
My wife and I did the same thing as you both did. She is 4 years younger than me and started taking her SS benefit at age 62 in 2011. At the same time, I claimed ONLY my spousal benefit at age 66 (I retired the previous year at age 65) so collected benefits on her earnings record for 4 years. Then in 2015 I claimed MY SS benefit at age 75 for a full 32% more than my FRA benefit amount! I am 81 now am very happy that my wife will collect my 4-year delayed SS benefit as her survivor benefit when I precede her in death, whenever that happens. :-)
Post: Rethinking the “Right” Time for Social Security
Link to comment from April 23, 2026