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January 13, 2025Is there a downside to taking your pension on a monthly basis vs. taking a lump sum? The monthly payments would be higher than the return I would get on the lump sum. – Claudette There are certainly some downsides of taking monthly pension payments instead of a lump sum. But that doesn’t necessarily mean… read more…

January 6, 2025Does the interest, dividends and capital gains from assets owned in my taxable brokerage account count toward the Social Security earnings limit? Only wages from employment or self-employment count toward the exempt earnings limit for those who file for early Social Security. Investment income won’t result in benefit withholdings, but it can influence the taxation… read more…

December 30, 2024I have had a Roth IRA and a Traditional IRA for well over five years and want to start converting the traditional IRA to the Roth IRA. My belief is that I could start withdrawing the converted funds without any penalty, since the Roth has been open for over five years and I am over 59… read more…

December 23, 2024I have two inherited Roth accounts that total around $80,000, and an inherited IRA account with around $80,000 from my partner’s 401(k) account. My partner sadly passed away this year at age 45. I am 70 years old. What are my RMD requirements for this year and the next few years? – Jose First of all,… read more…

December 17, 2024I am a 66-year-old retired woman. I left my 401(k) with my old employer – roughly about $300,000 – but now I’m thinking about rolling it over and don’t know where to begin. Can you advise me? -Renee Rolling over a 401(k) after retirement is a decision many people face, and while the process isn’t… read more…

December 10, 2024I’m about five years away from 62 and wondering if my estimated Social Security benefits factor in inflation/cost of living increases? If I retire at age 62 and my benefit estimate ($1,708) is correct, I will get eight cost-of-living adjustments (COLAs) by the time I reach age 70. If we apply the historical average COLA… read more…

December 3, 2024Do funds in a Roth IRA get the benefit of a stepped-up basis for my heirs when I die? – Ed No, the cost basis of the assets held within your IRA will not step up or reset to their current market value when you pass away. A step-up in basis only applies to assets… read more…

November 7, 2025My husband will turn 73 on Nov. 16, 2027. How much of an RMD does he have to withdraw in 2027 and should he do it between Nov. 16 and Dec. 31, 2027? What percentage of his retirement assets should he withdraw every year thereafter? Also, is it correct that he needs to make the… read more…

November 19, 2024I am a new college graduate who had a part-time job and earned $8,000 with no benefits during my final spring semester. I put my first $7,000 of earnings into a Roth IRA. After graduation, I got a full-time job with benefits including a 401(k) plan with 50% company match. Am I allowed to participate in the… read more…

November 12, 2024With the exception of tax preparation, how do you determine when a certified public accountant (CPA) is needed versus a financial advisor for financial guidance?  – Joyce In many cases, most people would benefit from having both a certified public accountant (CPA) or other professional tax preparer and a financial advisor. Each has their own… read more…

November 5, 2024I have $120,000 in after-tax contributions in my traditional 401(k) at work. Can I roll over just the after-tax money into my Roth IRA? I would like to avoid creating a taxable event. – Daniel Daniel, this is a great question. Your ability to roll over these after-tax 401(k) contributions to your Roth IRA may… read more…

October 29, 2024Does a military pension count toward income levels for Roth contributions? – Gail Congratulations on earning your service pension. Whether it’s due to your own service or a spouse’s service, you’ve earned it. On one hand, military pensions don’t meet the “earned income” requirement necessary to qualify for a Roth contribution, meaning a pension alone… read more…

October 29, 2025I’m 71 years old and my current Thrift Savings Plan (TSP) balance is $315,000 after withdrawing $60,000 this year. This is putting me in a higher tax bracket and I must pay a large amount of federal/state taxes. In addition, my monthly Medicare premium will increase. Will the Medicare premium increase permanently or only the… read more…

October 15, 2024I want to do three Roth conversions in the next three years before I turn 73 in 2027 so that my beneficiary doesn’t have to deal with taxes. If I should die soon after the last conversion, will my beneficiary be subject to the five-year rules? – Tom This is a good question. The five-year… read more…

October 8, 2024What if a husband and wife own a home together that increases in value by $500,000. When one spouse dies and the other owns the property themselves, do they receive a step-up in basis? Or do they only receive a $250,000 capital gains exemption when they sell the property? – Samuel Your question deals with… read more…

October 1, 2024I’m 63 and still working. My wife, who is 64 ½ and retired, spent most of her working life raising our children at home. She qualifies for Social Security at a current rate of $675 and $845 if she waits until FRA. I plan on working for another two or three years. My Social Security… read more…

October 29, 2025Although everyone is different from a tax bracket standpoint, at what tax bracket does it makes sense to start converting your 401(k) into a Roth 401(k) and pay the taxes upfront? For instance, I am 42 with a combined income of $560,000 between myself and my wife, putting us in the 35% federal tax bracket.… read more…

July 10, 2025I’m 62 and currently working but my spouse passed away when I was 60. He waited until age 70 to take his Social Security. Can I collect his Social Security now in addition to my paycheck? If I get more money under my account at FRA, can I switch?   – Ellen I’m sorry to hear… read more…

September 4, 2024I want to do a Roth conversion from my traditional IRA in the amount of $250,000. It’s my understanding that I have to pay the income tax on the $250,000. Can that tax be paid from the funds in the IRA or do I have to pay the tax outside of the IRA? – Kevin… read more…

August 27, 2024How often can I change advisors who manage my assets? I just started in May and I feel uneasy with my advisor. – Maricor I’m sorry to hear that you’re not feeling good about your current advisor. The good news is that while there are some practical limitations to consider, there really aren’t any restrictions… read more…

October 14, 2024Because of our income bracket – we make over $350,000 per year – we cannot contribute to a Roth anymore. We’re 61 and 62, and planning to work until at least 67. Do we qualify to convert our 401(k)s into Roths a little at a time or do we have to wait until we retire?… read more…

August 14, 2024I’m 63 and have been on Social Security disability since 2008. My wife, also 63, stays home to care for me. We’re in poor health and were denied or quoted high rates for long-term care insurance in our mid-50s, with recent quotes as high as $1,850 a month for me and $2,750 for her. We… read more…

August 6, 2024I am the only eligible Social Security recipient in our marriage. My wife, at this point, will never have enough credits. I am 61 and my wife is 68. At what age would we get the most in Social Security where I get my social Security and my wife gets her spousal amount? – Tim… read more…

July 30, 2024After a recent job loss, I’m unfulfilled in my new role and considering retiring in January 2025 at age 55. My wife, 56, works part-time and we’ll switch to her health insurance next summer until she retires in two to three years. Until then, we’ll stay on my COBRA until May 2025. I’m struggling to… read more…

October 29, 2025I retired in 2022 at 62 years old. I have a $2,900 monthly pension and draw $1,900 per month in Social Security. I have $520,000 in my 401(k) and $24,000 in an IRA. I currently move $10,000 from my 401(k) to my IRA every time it increases $10,000 in value. Is it wise to do… read more…