The Retirement and IRA Show

Social Security, Early Withdrawals, SPIAs, QLACs, Retirement Strategy: Q&A #2634

Jim and Chris discuss listener emails on spousal Social Security timing, a listener PSA on the super catch-up contribution rule, early withdrawals from a Roth 457(b) plan, Minimum Dignity Floor coverage using SPIAs, QLACs as a hedge against potential Social Security cuts, and a couple’s retirement strategy. (10:00) — A listener asks whether a wife nearing full retirement age can claim her own smaller Social Security benefit now, then switch to a spousal benefit once her husband files at his full retirement age. (18:15) — A listener PSA offers clarification on a previous Q&A episode’s super catch-up contribution rule discussion. (22:15) — Jim and Chris are asked how early withdrawals of growth from a Roth 457(b) plan are taxed for someone who won’t yet be 59 and a half, since 457(b) plans avoid the 10% early withdrawal penalty but may not meet the usual requirements for tax-free Roth distributions. (32:30) — George asks for guidance on using a dual life single premium immediate annuity (SPIA) to help a retired couple with minimal Social Security and no pension cover their Minimum Dignity Floor. (45:00) — A listener asks several questions about how qualified longevity annuity contracts (QLACs) work and whether the current contribution limit could offset a potential future cut to Social Security benefits. (1:00:30) — The guys review a retirement drawdown plan involving brokerage assets, Roth conversions, and an inheritance, and are asked whether the overall strategy holds up. The post Social Security, Early Withdrawals, SPIAs, QLACs, Retirement Strategy: Q&A #2634 appeared first on The Retirement and IRA Show.

Extending Your Go-Go Years: EDU #2633

Chris’s Summary Jim and I are joined again by Dr. Philip Snyder as we continue looking at narrowing the gap between healthspan and lifespan and extending your go-go years. We discuss a listener-submitted article on health-adjusted life expectancy, which argues for concentrating retirement spending in the first decade of retirement rather than following a static, Monte Carlo-based safe withdrawal rate. Dr. Snyder updates his coronary artery calcium scoring correction, introduces the CCTA angiogram for non-calcified plaque, and outlines the four components of exercise, cardio, strength, balance, and flexibility, for maintaining function as we age. Jim’s “Pithy” Summary Chris and I welcome back Dr. Philip Snyder to pick up right where we left off, because folks, this whole thing, all of it, is about extending your go-go years, and I’ll admit this episode gave me some homework of my own. Dr. Snyder corrects something he got wrong last time on coronary artery calcium scoring, breaks down a newer angiogram option for catching the sneaky non-calcified plaque a clean CAC score can miss, and even mentions a blood test called PLAC2 for folks who can’t do the angiogram. A listener sent in a short article about spending more in your first decade of retirement instead of hoarding it for some rainy day that never comes, and it is basically what I have been calling the Fun Number for years. You spend your whole life saving, and then you’re too scared to spend it. My dad used to warn me about the Debbie Downers in his retirement community, folks with plenty of money left but no health left to enjoy it. Nobody wants to be that person, and nobody wants to be the wealthiest person in the graveyard either. Dr. Snyder walks through the four pieces of exercise you need as you get older, cardio, strength, balance, and flexibility, and Chris and I both admit we need a grease gun just to get moving some mornings. We get into tai chi, stretching, why I still cannot make myself do it consistently, and why one-third of people who break a hip never fully bounce back. Show Notes: “The First Decade Retirement Plan” article The post Extending Your Go-Go Years: EDU #2633 appeared first on The Retirement and IRA Show.

Social Security, IRMAA, Roth Conversions, Roth Contributions, TEFRA: Q&A #2633

Jim and Chris discuss listener emails on the Social Security Fairness Act, an IRMAA question involving deferred compensation, Roth conversions before and after key age milestones, Roth contributions for high-income catch-up savers, and how TEFRA affects an inherited annuity. (9:45) — A listener disagrees with the show’s characterization of the Social Security Fairness Act as unfair, explaining that after paying into both a government pension and Social Security for 40 quarters, she believes receiving both without penalty is fair for her situation. (27:45) — The guys field a question from a retiree who retired in 2025 and will receive deferred compensation payments through 2029 that push his income over the IRMAA threshold. He wonders whether he can file an SSA-44 in 2029 to eliminate the IRMAA surcharges. (37:00) — Jim and Chris are asked to revisit a recent discussion on moving money from Traditional to Roth accounts instead of taking distributions, with a listener wanting more detail on the implications of doing so before age 59 and a half and after RMD age. (48:30) — George asks for the pluses and minuses of continuing Roth 401(k)/403(b) contributions later in life compared with investing in a taxable brokerage account, including how a 50-year-old might decide between the two and whether those aged 61-63 should use the Roth option for super catch-up contributions. (1:03:30) — A listener has several questions about TEFRA, including what it stands for, when it was enacted, and how it affects distributions from an inherited annuity listing Pre-TEFRA and Post-TEFRA cost basis. The post Social Security, IRMAA, Roth Conversions, Roth Contributions, TEFRA: Q&A #2633 appeared first on The Retirement and IRA Show.

Investment Positioning Part 2: EDU #2632

Chris’s Summary Jim and I are joined by Jacob Vonloh as we continue our discussion on investment positioning, wrapping up asset placement for emergency, aging, and long-term care reserves and the fun spending that flows from your Fun Number, across the Go-Go and Slow-Go/No-Go phases. Jacob also outlines the guaranteed inheritance set-aside and closes with the growth and legacy position, the leftover dollars not assigned elsewhere. Jim’s “Pithy” Summary Chris and I are joined by Jacob Vonloh as we pick back up right where we left off last week on investment positioning, finishing up the fun spending and SEAL Reserve pieces we didn’t get to. I keep coming back to this: retirement is the mirror opposite of the accumulation years, and when your whole portfolio looks like one big pot, a down market makes it feel like everything’s going down — and that fear is what stops people from spending on fun. That’s exactly why we don’t look at it that way. Jacob walks through how we tier the SEAL Reserve by age, and how fun spending gets laddered and benchmarked differently depending on how soon you’ll need it — all made possible by looking at each position on its own instead of one blended portfolio, which is the whole idea behind what I coined the See Through Portfolio. It’s also why you can’t compare your protected short-term Go-Go dollars to your long-term positions and think something’s wrong — that’s an apples-to-oranges comparison from the start. There’s a real cost to saving your whole life just to sit there and watch the money grow instead of enjoying it — don’t become what my dad used to call a Debbie Downer. Before we wrap, we also touch on two more positions that won’t apply to everybody. If you’ve got a specific bequest you want locked in today, there’s a guaranteed inheritance set-aside for that. And if you end up with dollars left over once everything else is funded, we get into what to do with what we call the growth and legacy position. The post Investment Positioning Part 2: EDU #2632 appeared first on The Retirement and IRA Show.

Spousal Benefits, HSA Tax Strategies PSA, Inherited IRAs: Q&A #2632

Jim and Chris discuss listener emails on Social Security spousal benefits, a listener PSA on HSA tax strategies and treasuries, and inherited IRA RMD rules for minor beneficiaries. (9:00) A listener asks about qualifying for spousal benefits after a lengthy separation, since both spouses are now retired but remain legally married. (28:15) The guys share a listener PSA on tax strategies involving harvesting HSA-eligible expenses, including Medicare B and D premiums, as a tax-free funding source, and on laddering treasury bills through Fidelity or Schwab instead of TreasuryDirect. (40:15) George follows up on inherited IRA rules for minor child beneficiaries, asking whether an eligible designated beneficiary can elect the 10-year rule instead of taking the stretch, which requires RMDs. The post Spousal Benefits, HSA Tax Strategies PSA, Inherited IRAs: Q&A #2632 appeared first on The Retirement and IRA Show.