AUTHOR: Mark Ukleja on 5/15/2025 FIRST: stelea99 on 5/15 | RECENT: William Perry on 5/18
Comments
Will, thanks for the valuable info. I have a question re #5 where you indicate that the surviving spouse can allow the deceased spouse's benefit to accrue the normal mortality credits to age 70 and then claim the increased benefit. I can't recall where I saw it but I'm not sure that's accurate. My understanding is the deceased spouse's benefit will accrue mortality credits until what would have been their full retirement age (FRA) or the date of death if after FRA whichever is later but no additional credits accrue after that. So, if a spouse had an FRA of 67 and died prior to that before taking benefits, the surviving spouse could allow the deceased spouse's benefit to continue to accrue to what would have been their FRA and then adopt that benefit but no further benefit accrues after that, ie., there is no "waiting till 70" option. Alternatively, if the first spouse dies after FRA (let's say 68) and before taking benefits, the surviving spouse should immediately adopt the deceased spouse's higher benefit because the deceased spouse's benefit will not increase after that date. Can you or any of the HD social security sages confirm which of these interpretations is correct because that will definitely impact my "Damn it! I'm dead" instructional letter to my survivors. Thanks.
We put a screened in porch on a few years ago when the $$$ became easy. Only regret is not sucking it up and doing it sooner. Life changer in terms of quality of life at the house. We virtually live out there!
The more I research, the more you appear to be correct. Looks like you can do all in same year. I must be thinking of something else or had a bad source. My bad.
Bogdan, just a quick question on the "Eliminate traditional IRA balances" part. Are you saying eliminating a balance by 12/31/2025 would allow a 2025 backdoor Roth? I thought I recalled reading a while back somewhere that the balance had to be $0 for the entire year not just at 12/31. So, eliminating balances in 2025 would allow a 2026 Backdoor but not a 2025. Of course, I could be wrong, but I thought I recalled some goofy timing thing that was a "gotcha".
Maybe I'm missing something but I don't see the attraction of making quarterly payments if the option to use some type of withholding exists (pay, pension, SS, and/or RMD). Unlike withheld tax payments, quarterly payments require one to match income to taxes incurred and, thus, opens the potential to incurring an underpayment penalty and/or interest.
I "choose" what my minimum income for the year will be at the beginning of the year based on needs and tax planning goals. My total income is my annuitized income streams plus potentially some self employment and mini Roth conversions which I use to hit my income goal. I then figure out the yearly tax on that income target and have 1/12 withheld from my pension each month. Nothing is withheld from the other sources (a small pension and SS) because its just easier to deal w one source of withholding.
If, at some point during the year, due to unexpected income I see that I'm going to exceed my income goal and incur additional taxes, i just log on to my pension website and make an upward adjustment in withholding as needed. And I never have to worry about timing of tax payments on the Roth conversions or self employment income because it's all through withholding and not quarterly payments.
Actually MFJ >65 can “make” $148,300 in 2026 as the Std Deduction, > 65 deduction, and OBBB $12K senior deduction brings your taxable income to $100,800 (the top of the 12% bracket). Just wanted to point out that the gross income cap is much higher. Such a deal!😁
Whenever I find myself about to say or do something that will highlight my ignorance, envy, lack of empathy, unkindness, or any of my various other personality and behavioral defects, I hope to be able to stop before I do so and ask myself, "What would Jonathan do?". Such a class act and role model in so many ways.
My dad would be happy to hear. He worked in quality control in the factory for many years. He always credited Gerhard Neumann, who ran the Aircraft Engine Group for many years and was a legend in the aviation industry for GE's success. His biography, "Herman the German" is worth reading if you're into aviation history. Cheap paperback on Amazon. He had an amazing life.
My dad worked for GE (Aircraft Engine Division) for 42 years and I can't tell you many times we heard about that terrible day that GE sold the Appliance Division and how it was all junk after that. (And don't even ask about what he thought about Jack Welch.) :0
Comments
Will, thanks for the valuable info. I have a question re #5 where you indicate that the surviving spouse can allow the deceased spouse's benefit to accrue the normal mortality credits to age 70 and then claim the increased benefit. I can't recall where I saw it but I'm not sure that's accurate. My understanding is the deceased spouse's benefit will accrue mortality credits until what would have been their full retirement age (FRA) or the date of death if after FRA whichever is later but no additional credits accrue after that. So, if a spouse had an FRA of 67 and died prior to that before taking benefits, the surviving spouse could allow the deceased spouse's benefit to continue to accrue to what would have been their FRA and then adopt that benefit but no further benefit accrues after that, ie., there is no "waiting till 70" option. Alternatively, if the first spouse dies after FRA (let's say 68) and before taking benefits, the surviving spouse should immediately adopt the deceased spouse's higher benefit because the deceased spouse's benefit will not increase after that date. Can you or any of the HD social security sages confirm which of these interpretations is correct because that will definitely impact my "Damn it! I'm dead" instructional letter to my survivors. Thanks.
Post: THE REAL RETURN ON DELAYING SOCIAL SECURITY
Link to comment from November 23, 2025
We put a screened in porch on a few years ago when the $$$ became easy. Only regret is not sucking it up and doing it sooner. Life changer in terms of quality of life at the house. We virtually live out there!
Post: Waiting Until We Turn 70
Link to comment from October 22, 2025
The more I research, the more you appear to be correct. Looks like you can do all in same year. I must be thinking of something else or had a bad source. My bad.
Post: Backdoor Roth Explained
Link to comment from October 18, 2025
Bogdan, just a quick question on the "Eliminate traditional IRA balances" part. Are you saying eliminating a balance by 12/31/2025 would allow a 2025 backdoor Roth? I thought I recalled reading a while back somewhere that the balance had to be $0 for the entire year not just at 12/31. So, eliminating balances in 2025 would allow a 2026 Backdoor but not a 2025. Of course, I could be wrong, but I thought I recalled some goofy timing thing that was a "gotcha".
Post: Backdoor Roth Explained
Link to comment from October 18, 2025
Maybe I'm missing something but I don't see the attraction of making quarterly payments if the option to use some type of withholding exists (pay, pension, SS, and/or RMD). Unlike withheld tax payments, quarterly payments require one to match income to taxes incurred and, thus, opens the potential to incurring an underpayment penalty and/or interest. I "choose" what my minimum income for the year will be at the beginning of the year based on needs and tax planning goals. My total income is my annuitized income streams plus potentially some self employment and mini Roth conversions which I use to hit my income goal. I then figure out the yearly tax on that income target and have 1/12 withheld from my pension each month. Nothing is withheld from the other sources (a small pension and SS) because its just easier to deal w one source of withholding. If, at some point during the year, due to unexpected income I see that I'm going to exceed my income goal and incur additional taxes, i just log on to my pension website and make an upward adjustment in withholding as needed. And I never have to worry about timing of tax payments on the Roth conversions or self employment income because it's all through withholding and not quarterly payments.
Post: How do you pay income tax withholding in retirement?
Link to comment from October 15, 2025
Thanks, Rick. I should have mentioned that. I have an 85% factor for SS incorporated into my Excel gross income/tax planning spreadsheet.
Post: 2026 IRS Inflation Adjustments
Link to comment from October 10, 2025
Actually MFJ >65 can “make” $148,300 in 2026 as the Std Deduction, > 65 deduction, and OBBB $12K senior deduction brings your taxable income to $100,800 (the top of the 12% bracket). Just wanted to point out that the gross income cap is much higher. Such a deal!😁
Post: 2026 IRS Inflation Adjustments
Link to comment from October 10, 2025
Whenever I find myself about to say or do something that will highlight my ignorance, envy, lack of empathy, unkindness, or any of my various other personality and behavioral defects, I hope to be able to stop before I do so and ask myself, "What would Jonathan do?". Such a class act and role model in so many ways.
Post: Farewell Friends
Link to comment from September 23, 2025
My dad would be happy to hear. He worked in quality control in the factory for many years. He always credited Gerhard Neumann, who ran the Aircraft Engine Group for many years and was a legend in the aviation industry for GE's success. His biography, "Herman the German" is worth reading if you're into aviation history. Cheap paperback on Amazon. He had an amazing life.
Post: Have you purchased an appliance lately? Talk about sticker shock.
Link to comment from September 20, 2025
My dad worked for GE (Aircraft Engine Division) for 42 years and I can't tell you many times we heard about that terrible day that GE sold the Appliance Division and how it was all junk after that. (And don't even ask about what he thought about Jack Welch.) :0
Post: Have you purchased an appliance lately? Talk about sticker shock.
Link to comment from September 19, 2025