- Medicare Part B Increase: How COLA Is Affected, Rules and Examples
Social Security’s annual cost-of-living adjustment (COLA) raises monthly benefits, but most Medicare Part B enrollees have their premiums deducted from that same payment. When premiums rise, they absorb part of the increase, leaving less extra money than the COLA percentage suggests. Knowing how the deduction, hold-harmless protections and income-related surcharges work can help you estimate… read more…
- She Inherited $400,000 at 60 and Claimed Social Security at 62. Then Her Tax Bill Went Up.
Retirees often believe that an inheritance won’t affect their Social Security taxes because the money they receive generally isn’t taxed. Income from inherited assets or withdrawals from certain accounts, however, can increase what you report to the IRS and make more of your benefits taxable. An inheritance on its own won’t reduce your monthly Social… read more…
- Mega Backdoor Roth IRA: How to Max Tax Benefits
A mega backdoor Roth can let you contribute substantially more to Roth accounts than the standard annual limits allow. Having excess cash flow isn’t enough on its own, since your 401(k) must permit after-tax contributions and either in-plan Roth conversions or in-service distributions to a Roth IRA. The timing of the conversion also matters, because… read more…
- She Moved In as a Dependent at 62. Here’s How Much She Could Get Based on Her Daughter’s Social Security Record.
Moving in with an adult child at 62 does not qualify a parent for Social Security based on the work record of that family member. Benefits for parents are available only after the son or daughter dies, and only if the parent received at least half of their support from them. Here is what a… read more…
- 2026 Midterm Election: Which Party’s Plan Could Benefit Your Retirement Savings?
The November 3 midterms won’t change your Social Security benefits overnight, but they could influence the program’s future. The parties are taking different approaches to retirement-related taxes: Republicans point to the $6,000 senior tax deduction already in law, while some Democrats want higher earners to pay Social Security taxes on more of their wages. Any… read more…
- I Maxed Out My 401(k) and Still Had Room. The Move That Added $40k in Tax-Free Savings.
If you have already maxed out your 401(k), you may still have room to save more at work. The amount will depend on federal limits and whether your employer adds money to your account. A mega backdoor Roth could turn that extra room into tax-free retirement savings. Here’s an example of how this strategy could… read more…
- My Social Security Got a Raise. Then Medicare Quietly Took Most of It Back.
Social Security’s annual cost-of-living adjustment (COLA) raises your monthly benefit, but a higher Medicare Part B premium can leave you with less of that increase to spend. Most retirees enrolled in Part B have the cost deducted from their Social Security payment. In 2027, the COLA will be 3.6%, with average retirement benefits increasing by… read more…
- My Adult Children Support Me Financially. Can I Collect Social Security as Their Dependent?
Even if your adult son or daughter helps pay your bills, you can’t collect Social Security on their work record while they’re alive. After their death, you may qualify for parent’s benefits if you’re 62 or older and they covered at least half of your living expenses.1 Here are the general requirements and an example… read more…
- My Husband Died. Here’s How Much of His Social Security I Can Actually Claim.
Losing your spouse can change the size of your Social Security benefit. You cannot collect their full amount and your own at the same time, but you generally get whichever is larger. Claiming survivor benefits before your full retirement age (FRA) could reduce that check for as long as you collect it. Here’s how much… read more…
- My Son Supported Me Before He Died. Here’s How Much I Could Get Based on His Social Security Record.
If an adult child helped cover your living expenses before dying, Social Security may provide income based on that work record. Meeting the program’s dependency rules can make you eligible for a monthly benefit. The payment amount reflects the deceased worker’s earnings history and whether other family members qualify. When a Parent Can Collect Social… read more…
- I’m 72 With a Year Left Before RMDs. Here’s How I’m Shrinking Them Now.
At 72, you may find yourself one year away from required minimum distributions (RMDs), but that narrow window could still offer an opportunity to reduce future mandatory withdrawals. Converting part of a traditional individual retirement account (IRA) to a Roth IRA or taking a voluntary distribution before they begin may help lower your balance. The… read more…
- Early Retirement With a Roth Ladder: Strategy and Examples
A Roth conversion ladder can help early retirees access retirement savings before age 59 ½ without triggering the usual early withdrawal penalty. The strategy works by gradually converting pretax retirement money to a Roth IRA. However, timing is critical: Each conversion generally has its own five-year waiting period before it’s possible to withdraw converted taxable… read more…
- We Retired at 63. Tapping Our 401(k) Before Social Security Changed Everything.
Retiring at 63 can create an income gap if you delay Social Security. One option is to use 401(k) withdrawals as a temporary bridge, which could allow you to claim a higher monthly benefit later. To determine whether this strategy might work for your retirement, you will need to figure out if the increase is… read more…
- Mega Backdoor Roth 401(k): How to Max Tax Benefits
A mega backdoor Roth 401(k) can give high earners a way to save even more for retirement. This strategy allows them to put substantially more money into Roth savings than standard contribution limits normally allow. The strategy uses after-tax 401(k) contributions that are later converted to Roth, potentially creating years or decades of tax-free growth.… read more…
- I’m 40 With 25 Years to Retire. Ignoring My 401(k) Match Could Cost Me Almost $165,000.
Skipping a 401(k) match at age 40 could cost you more than the amount your employer would have contributed. You also give up potential investment growth on that money during the next 25 years. Missed contributions and earnings can add up to a substantial gap in your retirement savings. How Much Employer Money You Could… read more…
- Social Security at 62 vs. 65: What Is the Break Even Point?
Claiming Social Security at 62 gives you three extra years of payments, but each monthly check is permanently smaller than it would be if you had waited until 65. Delaying benefits means giving up that early income in exchange for a larger monthly payment later. The break-even point shows when those larger checks catch up… read more…
- Social Security Check at 62 vs. 70: How Much Can You Get?
Choosing between claiming Social Security at 62 or waiting until 70 can create a wide gap in your monthly income. Starting early gives you more years of payments, while delaying may increase the amount of each check. The tradeoff comes down to how long you expect to collect benefits and how much income you need… read more…
- Social Security COLA vs. Medicare: Will Your COLA Cover Higher Premiums?
Each year, Social Security benefits may increase with a cost-of-living adjustment (COLA), but higher Medicare premiums can reduce how much of that raise reaches your monthly budget. Since both are calculated differently, they do not necessarily move at the same rate. Comparing the dollar value of your COLA with changes in Medicare costs can show… read more…
- I’m 65 With $900k and No Pension. Here’s the Monthly Income That Actually Lasts 30 Years.
If you’re 65 with $900,000 and no pension, the income your portfolio can provide depends on how much you withdraw and the number of years your savings need to last. Taking too large a withdrawal early in retirement could increase the risk of running short later, while spending too little may unnecessarily limit your lifestyle.… read more…
- I’m 45 With 20 Years to Retire. Ignoring My 401(k) Match Could Cost Me Almost $115,000.
At age 45, skipping your 401(k) match means giving up more than your employer’s contribution. You also lose the potential investment growth this money could earn over the next 20 years. Depending on the size of the match and the investment-return assumptions used, that could leave you with almost $115,000 less by retirement. How 401(k)… read more…
- Trustee-to-Trustee Transfer: How to Move Retirement Money
A trustee-to-trustee transfer moves retirement money directly between financial institutions without sending the funds to you first. This can simplify moving IRA assets, keeping the money within the retirement system. It also generally avoids the 60-day deadline and once-per-year restriction that can apply to certain IRA rollovers. A financial advisor can help you plan out… read more…
- Retiring at 65 With $1.6 Million in a 401(k)? Your Biggest Tax Problem May Be Just 10 Years Away
Retiring at 65 with $1.6 million in a 401(k) could set you up for a much larger tax bill 10 years later. As the account continues to grow, RMDs may eventually force sizable taxable withdrawals, potentially pushing more of your retirement income into higher tax brackets. Why Your $1.6 Million 401(k) Could Create a Larger… read more…
- Can I Collect Part of My Parent’s Social Security? Here’s the Truth Most People Get Wrong.
One common misconception is that any adult child can request a share of a parent’s Social Security check simply because they’re related. In reality, eligibility on a parent’s record is narrow and depends on the child’s age, school enrollment or disability, and whether the parent is living, retired, disabled or deceased. Who Can Receive Benefits… read more…
- How Are Annuities Taxed? Withdrawals, Payouts and Penalties
Annuities can look tax-friendly because your money grows without an annual tax bill, but the real surprise often comes when you start taking money out. Depending on how the annuity was funded, withdrawals can trigger ordinary income taxes, early-withdrawal penalties and surrender charges. Combined, these costs can significantly reduce what you keep. It’s important to… read more…
- Successor Beneficiary of Inherited IRA: Rules, Options and Tax
A successor beneficiary is someone who inherits an individual retirement account (IRA) from a prior beneficiary rather than directly from the original owner. That second-generation inheritance can affect distribution deadlines, annual required minimum distributions (RMDs) and tax-planning considerations. Because of these implications, it’s especially important to understand the original beneficiary’s status. A financial advisor can… read more…