Posts by Brandon Renfro, CFP®, RICP, EA
Ask an Advisor
Ask an Advisor: Do I Have to Take RMDs from the IRAs That I’m Inheriting from My Mother?
I inherited an IRA from my mother who was already taking RMDs when she passed away. Am I required to take RMDs from the inherited IRA, or does the IRA simply need to be depleted by 10 years from the date of inheritance? I don’t have any special needs or disabilities. Similarly, are RMDs required… read more…
Ask an Advisor
Ask an Advisor: We Own Millions in Real Estate Through Self-Directed IRAs. How Do We Transfer it to Our Sons?
My wife and I own five senior homes in our self-directed IRAs. How do we transfer them to our two sons after we die? Under the new IRS rules it appears that the boys have only 10 years to take the money out. The houses are worth about $1.75 to $2 million in total now.… read more…
Ask an Advisor
Ask an Advisor: Can My Wife Collect Social Security on My Earnings Record and Switch to Hers at Age 66?
I’m 57 and my wife is 48. Both of us work, but my wife makes much less money than I do (almost 1/3 of what I make). I am planning to retire at age 66 and start collecting Social Security benefits. It is my understanding that I will be eligible for full benefits ($3,653 per… read more…
Financial Advisor
Ask an Advisor: I Want to Roll Over $60k to a Roth, But Need Help Tax Planning. Can I Offset Part of My Tax Bill By Donating Some of the Money?
I’m interested in converting a traditional IRA into a Roth IRA and want to know if taxes are due at time of the rollover. Currently, I have $95,566 in a traditional IRA and would like to roll over $60,000 to a Roth IRA. Also, is it possible to have part of the taxes designated as… read more…
Ask an Advisor
Ask an Advisor: Where Should I Put the $110k I’m Getting from My Divorce to Avoid Taxes and Medicare Increase?
I’m getting $110,000 from a 401(k) through a divorce QDRO. Where should I put the money to avoid excess tax and IIRMA implications? I’m 70 and my only income comes from Social Security. – Ran You have a few options, but be mindful that the tax impact and IRMAA implications of each won’t necessarily be… read more…
Financial Advisor
Ask an Advisor: Should My Wife Convert her $350k-$400k to a Roth IRA? She’s 65 But Isn’t Retiring Anytime Soon
My wife is currently working and has a traditional IRA with approximately $350,000 to $400,000. She is almost 65 but not looking to retire anytime soon. Should she roll over her IRA and take a tax hit and open a Roth IRA? I’m not sure if this is a smart move at this time in… read more…
Ask an Advisor
Ask an Advisor: Should I Move Some of My $650k from Stocks to Precious Metals?
My total investment value is approximately $650,000, mostly in stocks. Should I keep a percentage of my portfolio in precious metals? – Rex Investing a portion of a portfolio in precious metals is a common practice. If you keep the allocation modest — around 5% — I think it’s okay to use precious metals for… read more…
Ask an Advisor
Ask an Advisor: I’m 69 With $370k in Equities, But I’m ‘Getting Nervous’ About the Stock Market. What Should I Do?
I am a healthy, active 69-year-old with $370,000 in equities but I’m getting nervous that stocks are overvalued. My portfolio has no bonds. I am interviewing financial planners but due to a negative experience with a firm a few years ago, I am having a hard time trusting anyone else with my hard-won savings. What… read more…
Ask an Advisor
Ask an Advisor: My Wife Will Retire 2 Years Before Her Full Retirement Age (FRA). How Do We Calculate Her Spousal Benefit?
I am 76 and I have been receiving my benefit since age 62—four years before my full retirement age (FRA). My wife is now 61 and will retire at age 65—two years before her FRA. She will begin drawing her teacher retirement from the State of Texas, which is no longer subject to the Government Pension… read more…
Ask an Advisor
Ask an Advisor: Will the $500k in My Retirement Account Be Taxed When My Heirs Inherit it?
I have about $500,000 in a 403(b) account. I am writing my will and I do not know whether the money in my 403(b) will be subject to taxes when it is distributed to those I list in my will. Or, will the money just pass directly to those whom I have named? – Bill Bill,… read more…
Ask an Advisor
Ask an Advisor: We Sold an Investment and Our Medicare Part B Premiums Shot Up to $592. Can We Avoid This Increase?
I sold an investment property which made my income very high for that year. Medicare Part B premiums increased to $591.90 for both me and my wife. Is there any way to avoid that increase? Our Part D premiums increased as well. -Fred First off, congratulations on selling your investment property. Unfortunately, there likely isn’t… read more…
Ask an Advisor
Ask an Advisor: I’m 54 and Inherited a $100k Annuity from My Mom. Should I Take the Lump Sum or Monthly Payments?
I inherited a non-qualified annuity from my mom. I am on SSDI and I receive $1,800 per month. The annuity is worth $100,000. I am trying to decide whether to take monthly payments for the rest of my life, which should be about $450 a month, or take the lump sum (between $80,000 and $90,000… read more…
Ask an Advisor
Ask an Advisor: My Net Worth Is $3.76M and I’ll Collect $4,600 Per Month in Social Security. How Much Can I Afford to Spend on a House in Retirement?
How much can I afford to pay for a home and still maintain a comfortable retirement without worrying about running out of money? I’m 66 and I have about $1.78 million in a taxable investment account, $1.5 million in IRAs, $309,000 in a Roth and $115,000 in a deferred compensation plan. I also have a… read more…
Ask an Advisor
Ask an Advisor: I Have 2 Years Before I’m Eligible for Medicare. What’s My Best Option for Health Insurance?
What’s the best route for medical insurance without a work place option? I need two years of coverage before Medicare kicks in. – Robert Health insurance and its associated costs are an important consideration in retirement – even more so if you retire before qualifying for Medicare at age 65. I don’t think there’s any… read more…
Ask an Advisor
Ask an Advisor: Can I Invest My $10,000 RMD into an Annuity to Avoid Paying Taxes on It?
Here is my question, which uses hypothetical values for simplicity: My RMD for 2024 is $10,000. Can I avoid paying the IRS the tax on that $10,000 this year by investing the full $10,000 RMD or the value of the tax on the $10,000 into a qualified longevity annuity contract (QLAC). I just retired in… read more…
Ask an Advisor
Ask an Advisor: My Wife Did a $40K Roth Conversion in a Low-Tax Year. Does She Really Need to Wait 5 Years to Withdraw it?
I encouraged my wife to take a $40,000 Roth conversion in a lower tax year. Even though she has another Roth IRA at a different broker, she was encouraged to keep the money where she already had her 401(k), which we converted to a IRA and then to a Roth IRA. She is well past… read more…
Ask an Advisor
Ask an Advisor: Is There a Downside to Taking a Monthly Pension vs. Lump Sum?
Is 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…
Ask an Advisor
Ask an Advisor: Will Capital Gains and Dividends in My Brokerage Account Impact My Social Security Benefits at 62?
Does 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…
Ask an Advisor
Ask an Advisor: I’m over 59 ½ and Did a Roth Conversion Over 5 Years Ago. Should I Worry About Taxes and Penalties?
I 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…
Ask an Advisor
Ask an Advisor: I’m 66 With $300k in My Old 401(k). What Are My Rollover Options?
I 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…
Ask an Advisor
Ask an Advisor: Social Security at 67 ($2,231) or 70 ($3,008). Will COLA Continue to Increase the Payout If I Wait?
I’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…
Ask an Advisor
Ask an Advisor: Will My Roth IRA Benefit from This Tax Loophole?
Do 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…
Ask an Advisor
Ask an Advisor: I Maxed Out My Roth IRA Earlier This Year and Then Got a New Job. Can I Participate in the Company’s 401(k)?
I 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…
Ask an Advisor
Ask an Advisor: When Should I Work With a Financial Advisor versus a CPA?
With 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…
Ask an Advisor
Ask an Advisor: Can I Roll Over $120k in After-Tax 401(k) Contributions to a Roth IRA Without Paying Taxes?
I 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…