Retirement Watch Weekly
Act Now To Avoid Higher Medicare Premiums
You could pay almost four times the regular Medicare premium in two years if you don’t take action soon. Back in 2003, Congress began means-testing Medicare by putting in place the Medicare premium surtax or surcharge. It’s known formally as IR-MAA, Income-Related Monthly Adjustment Amount. IRMAA is one of the Stealth Taxes I warn retirees […]
Set Up a Guaranteed Lifetime Income and Create a Large Tax Deduction, Often Without Cash
A mainstay of tax and retirement planning from years gone by is making a comeback, and it deserves to be considered in your plans. As the baby boomers age and market volatility increases, more Americans are seeking secure lifetime income. There’s a way to obtain guaranteed lifetime income and net a substantial tax deduction in […]
The Backdoor That Can Add Up to $37,000 to Your Roth IRA Every Year
Higher-income taxpayers often are shut out of the benefits of a Roth IRA. Contributions can be made to a Roth IRA only when your adjusted gross income (AGI) is be-low a certain level: $193,000 for a married couple filing jointly in 2019 and $122,000 for a single taxpayer. When AGI is above that level, the […]
7 Estate Planning Twists Everyone Should Know
You learn a lot of interesting things in estate planning. Most estate planners like what they do because of the variety of issues they face and the interesting things they learn about people. Here’s a collection of issues I’ve come across recently and questions I’ve been asked. When I was in law school, the transfer […]
Bob’s Journal for 10/24/19
Some Notable Events That Grabbed My Attention This Week Earnings season is underway, and the early results are interesting. Most summaries point out that so far earnings and revenues have met or exceeded expectations. But they don’t point out how expectations have changed over the quarter. During the third quarter, expectations steadily declined, and corporations […]
2 Ways To Avoid the ‘Double Tax’ on Your Retirement Benefits
As you know, IRAs and other retirement plans are included in the estate of the owner… And subject to federal estate taxes — when the estate is valuable enough. Here’s what many people don’t know: Unlike other assets, the tax basis of IRAs is not increased to current fair market value by those who inherit […]
Bob’s Journal 10/17
Social Security announced the inflation adjustments that will take effect on January 1, 2020. Retirement and disability benefits will increase by 1.6% because of the cost-of-living adjustment (COLA). For those who are still working, the maximum amount of earnings subject to the Social Security tax will be $137,700. People who are working while receiving Social […]
How the Stock Market Can Change Your Estate Plan
A new tax law isn’t the only reason to revisit your estate plan. The stock market and interest rate changes can alter the effects of many estate plans, often without their creators knowing the consequences. Here’s a guide to how changes in the stock market might affect your estate plan. As you know, the values […]
