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You may be right and i misunderstood what they told me. I understood it as once you hit a certain income the ss benefit were reduced. That is why everyone should talk to a professional and not take advise from strangers on the internet šŸ˜€
Totally agree. My background is in Insurance and Risk Management. Been there done that for 40 years. I'm always amused at the amount of misinformation posted on RV forums including this one. In fact, a few on this thread.

I can tell you from personal experience that most people who sell insurance are about as knowledgeable as RV sales people. But it's the same old story. You don't need to know everything, only more than the person you're talking to.
 
Unfortunately, that doesn't sound all that "minor" if it caused "major" changes.

-Don- Auburn, CA
You are right. Never thought about it like that before. The docs seem to focus on the physical side. Because motor skills werent affected much they considered it minor. It is probably a safe bet that the vast majority of strokes are extremely serious.
 
for a long time the stroke did appear to be minor. It took a very long time before many of the serious changes appeared. Strokes are scary, amazing, incomprehensible things. We may never know everything that was affected. Every day is an adventure.
 
Your benefits are reduced by $1 for every $2 you earn in excess of $22,320 for 2024 ($21,240 for 2023) until you reach your FRA.
Your benefits are reduced by $1 for every $3 that you earn above $59,520 for 2024 ($56,520 for 2023).
This is a different issue. It applies to people who collect social security while they are still working and earning income. It the amount of earned income in excess of the amounts stated above, the social security benefits are reduced. But those reduced benefits are still subject to tax.
 
This is a different issue. It applies to people who collect social security while they are still working and earning income. It the amount of earned income in excess of the amounts stated above, the social security benefits are reduced. But those reduced benefits are still subject to tax.
could be. I gotta check with my guys to learn more about how it affects me. Easy to post something from a google search. Interesting discussion but no one should think any of it applies to them.
 
could be. I gotta check with my guys to learn more about how it affects me. Easy to post something from a google search. Interesting discussion but no one should think any of it applies to them.
I can direct you to both the IRS and Social Security Administration Websites if you like but I'm beginning to think that would be a waste of my time.
 
I appreciate all the info even when it proves me wrong. I havent started rmds yet and taxes and social security arent areas i am overly familiar with. I also stopped doing my own taxes long ago cause of the businesses i owned, rentals, and flips. I have to rely on others for that stuff
 
Your benefits are reduced by $1 for every $2 you earn in excess of $22,320 for 2024 ($21,240 for 2023) until you reach your FRA.
Your benefits are reduced by $1 for every $3 that you earn above $59,520 for 2024 ($56,520 for 2023).
True, but if your payments are reduced your benefits will be re-calculated when you reach FRA to take into account the reduced payments you received up to that date. So the hit isn't quite as bad in the long run.
 
I am gonna need to understand this better and it isnt any clearer from searching online. I trust my financial guys but i like to have a basic understanding before talking to them. A lot of sites make vague statements that rmd's affect social security but dont get into all the reasons why. Some mention that ss becomes taxable but not much else.

I believe you guys about it not being considered taxable income from ss perspective and benefits not being directly affected. Would like more info. If anyone does have a link explaining it please post it.

At least i wasnt completely off base. There is a link and impact but i didnt understand it correctly. Thanks for identifying something i didnt understand. Sometimes it is hard to know what you dont know
 
I am gonna need to understand this better and it isnt any clearer from searching online. I trust my financial guys but i like to have a basic understanding before talking to them. A lot of sites make vague statements that rmd's affect social security but dont get into all the reasons why. Some mention that ss becomes taxable but not much else.

I believe you guys about it not being considered taxable income from ss perspective and benefits not being directly affected. Would like more info. If anyone does have a link explaining it please post it.

At least i wasnt completely off base. There is a link and impact but i didnt understand it correctly. Thanks for identifying something i didnt understand. Sometimes it is hard to know what you dont know
I am not an accountant but the way I understand it is distributions from a pre-tax account like an IRA (including RMDs) are considered income. If your total income for the year is less than $40k only 50% of your Social Security benefits are taxable. If your total income is above $40k, 85% of your SS benefits are taxable.

 
The way I understand it is distributions from a pre-tax account (including RMDs) are counted as income when they are withdrawn. If your total income is less than $40k for the year only 50% of your Social Security benefits are taxable. If your total income is above $40k, 85% of your SS benefits are taxable.

Thanks.
 

"Do 401(k) and IRA distributions count toward the Social Security earnings limit?"


No. Social Security defines ā€œearned incomeā€ as wages from a job or net earnings from self-employment, and it only counts earned income in its calculation of whether and by how much to withhold from your benefits. It does not take into account pensions, retirement-account distributions, annuities, or the interest and dividends from your savings and investments."



Above info from here.

-Don- Auburn, CA
 
Napa is usually about 10 degrees cooler than valley. But, I was thinking of going maybe 40-50 miles west or northwest. The far end of the valley tends to get ocean fog, at least. But really don't know what to do yet. Thanks for good info.
On the telephone, I just talked to my buddy in San Francisco who is from Napa and is there often because most of his family lives in Napa.

He says perhaps Yountville will be the best place to live which is about ten miles north of Napa.

Keep in mind the entire area is ridiculously expensive and no way to get around that. Very close to SF prices, a decent house will cost more than a million bucks anywhere near Napa. However, there are some small Condos for one third that price.

-Don- Auburn, CA
 
I am gonna need to understand this better and it isnt any clearer from searching online. I trust my financial guys but i like to have a basic understanding before talking to them. A lot of sites make vague statements that rmd's affect social security but dont get into all the reasons why. Some mention that ss becomes taxable but not much else.

I believe you guys about it not being considered taxable income from ss perspective and benefits not being directly affected. Would like more info. If anyone does have a link explaining it please post it.

At least i wasnt completely off base. There is a link and impact but i didnt understand it correctly. Thanks for identifying something i didnt understand. Sometimes it is hard to know what you dont know
Depending on your retirement taxable income between 50% and 85% of your SS could be considered taxable income. Your RMD is taxable income. Our tax rate is roughly 10%. In other words after any allowable deductions we pay roughly 10% in federal taxes. Because of our retirement income 85% of our Social Security is considered taxable income. If SS benefit is $36,000 about $31,000 is taxable income and since we are in a 10% tax bracket the federal tax on our SS would be about $3,100. Your RMD does not affect the amount of SS you get. RMD only affects what percentage of your SS is considered taxable income.
 
That and if you don't take the RMD there's a large tax penalty, so there's a large incentive to do that right.
We received a message from our financial advisor late 2022 that since I was turning 74 in 2024 I would have to start taking RMDā€™s from one of my accounts. I started receiving funds in our bank account early in 2024. I will have to pay taxes on those funds this year. Since we are in about a 10% tax bracket we pay about $1300 in tax on that RMD. We do not use any of our investments for retirement. Those funds for my wife to use for retirement if I should expire before her. She says she wants to move to assisted living if I go first. Our investments and equity in the house will set her up comfortably in any facility she chooses. If she dies first everything will go into a trust for the grandkids. Our son says he doesnā€™t need it and we canā€™t leave any to our daughter since she has not filed taxes for five years. The IRS will take whatever inheritance we give her. Too many generations have contributed to have the government take it.
 
This was from ny financial advisor about roth coversions. They are factoring in current planned tax changes. Making it more complex is that tax laws could easily change. Seems like it is a balancing act that no matter what the plan the rules keep changing. They are trying to set me up to avoid rmds altogether but not sure that is possible yet. I have a few years left but my wife is close to having to take them.

"If the laws donā€™t change, then youā€™ll still never see lower than taking out about a $100K Roth conversion, because you will be paying 12% tax on most of it. The next $100K is at 22%. Once you start drawing Social Security, more of that first $100K will be taxed at 22.2%. When tax laws change, the 12% becomes 15% and the 22.2% becomes 27.75%. If either of you died, then the surviving spouse hits those numbers a whole lot sooner, because income doesnā€™t change much, but brackets get there faster."
 
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