Edmunds Members - Cars and Conversations (Archived)

kyfdx

Yeah, it would be enough to make you file a joint return.

Doubling the premium at $228K seems onerous. Not to mention, both spouses have it doubled.

explorerx4

@imidazol97,
I thinks that's the 'my spouse hates me' surcharge for filing individually.

mjfloyd1

@kyfdx said:
Yeah, it would be enough to make you file a joint return.

Doubling the premium at $228K seems onerous. Not to mention, both spouses have it doubled.

If they were spouses then it would not be doubled🤣

stickguy

my goal in retirement now is to have to pay $578.30 each for Medicare.

oldfarmer50

stickguy said:

oldfarmer50 said:

kyfdx said:

stickguy said:

I’m trying to cut housing costs. So far not going well. I’ve been reduced to trying to not spend more!

Wait... aren't you headed to Europe?

Well, where stick is moving there’s a Copenhagen, a Denmark, a Russia, a Poland, a Rome and of course, an Amsterdam.

you forgot one of the other towns where I am looking in houses. Malta.

There’s also Syracuse but I had to stop somewhere. Just wait until we get into the Indian names.

oldfarmer50

kyfdx said:

oldfarmer50 said:

kyfdx said:

Another strategy (reason) for waiting to draw: If instead of taking SSA, you spend money from your tax-deferred retirement accounts, it may put you in a better tax bracket once you have to start taking RMDs.

I'm really concerned about what happens when both of us are 72, drawing SSA, pensions, and have to take 4% of our tax-deferred assets out, each year as RMDs. It could even put us into a bracket where we pay higher Part B premiums for Medicare.

My understanding of RMDs is that you can avoid taking them if you’re still working. Get yourself a fun little retirement job like Sandy and I.

I sure hope that’s the case since I don’t want to be forced to take money out of my company 401k which should be into 5 figures by then.

That only applies to 401Ks, if you are still employed by that same company. Otherwise, all 401Ks and traditional IRAs require RMDs at age 72.

I'm pretty sure I have a fun little retirement job..

I guess I’m fortunate that my only 401k is with my current employer. Everything else is a Roth. I’m also lucky to have a defined benefit pension which are becoming like unicorns.

I’m not an expert in this but can you roll over a previous employer’s 401k into one with your current employer to delay that RMD? I’m sure there’s a rule against it to spoil your fun.

oldfarmer50

imidazol97 said:

A Medicare B price chart: notice the unfair big step for anyone married filing separately
which sometimes gives large tax savings on Federal returns. It's like an ADM on
Medicare that others don't pay.

So there’s actually a benefit to being poor? Who knew?

snakeweasel

stickguy said:

oldfarmer50 said:

kyfdx said:

stickguy said:

I’m trying to cut housing costs. So far not going well. I’ve been reduced to trying to not spend more!

Wait... aren't you headed to Europe?

Well, where stick is moving there’s a Copenhagen, a Denmark, a Russia, a Poland, a Rome and of course, an Amsterdam.

you forgot one of the other towns where I am looking in houses. Malta.

Ah, Malta about an hour and a half due west of downtown Chicago. There is a nice little apple orchard there that makes some good apple wines.

snakeweasel

venture said:

snakeweasel said:

venture said:

snakeweasel said:

Back to something car related. I am going to work yesterday and I am stopped at a red light. The road I am on is just one lane in each direction through heavily wooded area but the cross street it 4 lanes divided and usually busy. We have no right turn lane but we do have a left turn lane. I am a few cars back so anyone coming up behind me wouldn't be able to get to the light to take the right turn on red but there is no one in the left turn lane. So someone comes up from behind passes all the cars waiting for the green and gets in the left turn lane and makes a right turn on red. As soon as he makes that turn the car behind me lights up like a Christmas tree, oh the pretty blue and red flashing lights, and heads out after him. I know the police in that town and that guy likely not only got a ticket for that turn but for passing in a no passing zone too.

You know...that is one of the worst designed ways to control traffic. When I "worked" at a state highway place, if there was room, I would make it a separate right turn lane and then a left/straight lane. That way traffic didn't back up because people wanted to turn right but couldn't because one guy was going straight. Some intersections, of course, are more suited to that design than others.

When these were rebuilt years later almost all of them were put back to the old way and traffic backed up.

The problem is the road passes through protected woodland and making the road wide enough to allow another lane for right turns would mean a lot of work and time and money to get an approval.

I didn't say to add a lane. I said make the right lane a right turn lane and make the other existing one a left turn and straight lane. There are other problems too where you do need more room though (and the one you mention is probably one of them) in that if there is an opposing road, the straight through lanes are facing each other...not a good idea since many people are dense. It really works well at a T-intersection and where you can shift opposing roads a half lane right.

The only problem with that is if you make the other lane a left turn and straight lane and do it in both directions the through traffic will be heading towards each other. The other issue would be if someone can't make the left turn due to oncoming traffic they impede the through traffic.

snakeweasel

imidazol97 said:

A Medicare B price chart: notice the unfair big step for anyone married filing separately
which sometimes gives large tax savings on Federal returns. It's like an ADM on
Medicare that others don't pay.

While married filing separately can give tax savings the smart bet would be that for any one couple it wouldn't. It's rare when a married filing separate saves you in taxes.

venture

snakeweasel said:

venture said:

snakeweasel said:

venture said:

snakeweasel said:

Back to something car related. I am going to work yesterday and I am stopped at a red light. The road I am on is just one lane in each direction through heavily wooded area but the cross street it 4 lanes divided and usually busy. We have no right turn lane but we do have a left turn lane. I am a few cars back so anyone coming up behind me wouldn't be able to get to the light to take the right turn on red but there is no one in the left turn lane. So someone comes up from behind passes all the cars waiting for the green and gets in the left turn lane and makes a right turn on red. As soon as he makes that turn the car behind me lights up like a Christmas tree, oh the pretty blue and red flashing lights, and heads out after him. I know the police in that town and that guy likely not only got a ticket for that turn but for passing in a no passing zone too.

You know...that is one of the worst designed ways to control traffic. When I "worked" at a state highway place, if there was room, I would make it a separate right turn lane and then a left/straight lane. That way traffic didn't back up because people wanted to turn right but couldn't because one guy was going straight. Some intersections, of course, are more suited to that design than others.

When these were rebuilt years later almost all of them were put back to the old way and traffic backed up.

The problem is the road passes through protected woodland and making the road wide enough to allow another lane for right turns would mean a lot of work and time and money to get an approval.

I didn't say to add a lane. I said make the right lane a right turn lane and make the other existing one a left turn and straight lane. There are other problems too where you do need more room though (and the one you mention is probably one of them) in that if there is an opposing road, the straight through lanes are facing each other...not a good idea since many people are dense. It really works well at a T-intersection and where you can shift opposing roads a half lane right.

The only problem with that is if you make the other lane a left turn and straight lane and do it in both directions the through traffic will be heading towards each other. The other issue would be if someone can't make the left turn due to oncoming traffic they impede the through traffic.

Yeah. That's what I said. There's much more in it than we can, or want, to discuss here. Just take my word for it.

kyfdx

oldfarmer50 said:

kyfdx said:

oldfarmer50 said:

kyfdx said:

Another strategy (reason) for waiting to draw: If instead of taking SSA, you spend money from your tax-deferred retirement accounts, it may put you in a better tax bracket once you have to start taking RMDs.

I'm really concerned about what happens when both of us are 72, drawing SSA, pensions, and have to take 4% of our tax-deferred assets out, each year as RMDs. It could even put us into a bracket where we pay higher Part B premiums for Medicare.

My understanding of RMDs is that you can avoid taking them if you’re still working. Get yourself a fun little retirement job like Sandy and I.

I sure hope that’s the case since I don’t want to be forced to take money out of my company 401k which should be into 5 figures by then.

That only applies to 401Ks, if you are still employed by that same company. Otherwise, all 401Ks and traditional IRAs require RMDs at age 72.

I'm pretty sure I have a fun little retirement job..

I guess I’m fortunate that my only 401k is with my current employer. Everything else is a Roth. I’m also lucky to have a defined benefit pension which are becoming like unicorns.

I’m not an expert in this but can you roll over a previous employer’s 401k into one with your current employer to delay that RMD? I’m sure there’s a rule against it to spoil your fun.

You probably could.. Would take a unique set of circumstances to make that happen. Many plans will not accept rollovers.

driver100

explorerx4 said:

@imidazol97,
I thinks that's the 'my spouse hates me' surcharge for filing individually.

imid....I sent you a message........re W-----.

imidazol97

snakeweasel said:

imidazol97 said:

A Medicare B price chart: notice the unfair big step for anyone married filing separately
which sometimes gives large tax savings on Federal returns. It's like an ADM on
Medicare that others don't pay.

While married filing separately can give tax savings the smart bet would be that for any one couple it wouldn't. It's rare when a married filing separate saves you in taxes.

When you include Ohio's income tax structure with some specific benefits that
phase out at higher incomes for married/jointly folks, it can work out except
for the progressive pricing on Medicare.

explorerx4

OH doesn't tax SS income but CT does. That's going to save me some money.

roadburner

kyfdx said:

Yeah, it would be enough to make you file a joint return.

Doubling the premium at $228K seems onerous. Not to mention, both spouses have it doubled.

That's where I'm stuck. It's beyond ridiculous.

kyfdx

In KY, you can file separately for state income tax, on a joint return. It almost always saves money.

Which is good, because they "simplified" the deductions (which means there aren't any...lol)

oldfarmer50

explorerx4 said:

OH doesn't tax SS income but CT does. That's going to save me some money.

Neither does NY and they don’t tax state pensions either. Otherwise I’d have to find a state with no income tax like Florida.

kyfdx

oldfarmer50 said:

explorerx4 said:

OH doesn't tax SS income but CT does. That's going to save me some money.

Neither does NY and they don’t tax state pensions either. Otherwise I’d have to find a state with no income tax like Florida.

KY excludes your first $31,150 of retirement income, no matter the source (pensions, SSA, IRA distributions)
It used to be $10K higher. 5% after that. I'd love to live in a state that doesn't tax retirement income, but I'm not moving to Florida.

explorerx4

States that don't tax your pension for 2022.
https://worldpopulationreview.com/state-rankings/states-that-dont-tax-pensions

laurasdada

Interesting discussion of retirement, taxes, ssa and medicare. I just turned 62, but still working and, of course, drowning in debt now that we've bought the new townhouse (I moved from low expense town to a not low expense town. Wicked smaht). Now in process, she's buying lighting, window treatments, outdoor furniture, rugs, and heaven forbid, more pillows. So, I'm depressed.
My FRA is 67, I too, have a Kia Forte car payment pension coming at 65 (was almost Audi A7 sized, but divorce...).
Still working, I think I could actually retire, but haven't really done the math. Gotta get through taxes first... Didn't really think about RMDs (although I did take one in '21 from my inherited IRA which counterbalanced my PHEV fed tax credit), now again, I'm depressed. Or, if I was like stickguy, I'd be smiling... but, I'm a pessimist. So, I'm rarely disappointed.
I'd like to get her retired first, I fear if I did and she saw me lounging around, resentment would build. Even more than usual. She is working too hard, not good for her physical or emotional well being. To be reviewed come July.

kyfdx

I don't think Tennessee has a state income tax, at all. High sales taxes, though.

kyfdx

The tax thing seems like a rich person problem, but we are far from that, and we could get a massive tax hit. I sort of wish I hadn't penciled it out, now.

I always felt good about the Roth conversions, as they seemed substantial. But, it's like peeing in the ocean. It helps, but won't fix the problem.

laurasdada

kyfdx said:

The tax thing seems like a rich person problem, but we are far from that, and we could get a massive tax hit. I sort of wish I hadn't penciled it out, now.

I always felt good about the Roth conversions, as they seemed substantial. But, it's like peeing in the ocean. It helps, but won't fix the problem.

Which problem does peeing in the ocean fix? Water a bit too blue for ya?

kyfdx

laurasdada said:

kyfdx said:

The tax thing seems like a rich person problem, but we are far from that, and we could get a massive tax hit. I sort of wish I hadn't penciled it out, now.

I always felt good about the Roth conversions, as they seemed substantial. But, it's like peeing in the ocean. It helps, but won't fix the problem.

Which problem does peeing in the ocean fix? Water a bit too blue for ya?

Those last two sentences don’t relate to each other. Each relates independently to the first sentence in the paragraph.

I just read Joyce’s Ulysses, recently, so I’m no longer bound by proper paragraph construction. 🤣😂😂

stickguy

at least they pushed RMD start date from 70.5 to 72. With any luck by the time I get there, it will move more!

Roth conversions, I likely missed most of that boat. will probably get some done in a few years if I retire in the 62 range. But likely not enough to make much difference.

so I am going with the "worry about it if I make it to 72" plan. And if I get hammered by taxes on overly large RMDs I don't need, I will do the only logical thing. Complain like crazy, then buy a Porsche.

stickguy

I also read a bunch about tax advantaged states for retirement. Wife doesn't want to move to any of them. NY is actually IIRC somewhere in the middle but not going to be great. Should have looked at New Hampshire more but that does not help much being close to family. Plus it is cold.

explorerx4

Victory is mine! Got the mouse. Peanut butter did the trick.
I noticed on of the traps had moved but it was kind of under the car, so I didn't see the mouse until I got up close to it.

jmonroe1

stickguy said:

at least they pushed RMD start date from 70.5 to 72. With any luck by the time I get there, it will move more!

Roth conversions, I likely missed most of that boat. will probably get some done in a few years if I retire in the 62 range. But likely not enough to make much difference.

so I am going with the "worry about it if I make it to 72" plan. And if I get hammered by taxes on overly large RMDs I don't need, I will do the only logical thing. Complain like crazy, then buy a Porsche.

You could always touch base with me when the time comes but I’m sure you know what I’ll say.

jmonroe

jmonroe1

explorerx4 said:

Victory is mine! Got the mouse. Peanut butter did the trick.
I noticed on of the traps had moved but it was kind of under the car, so I didn't see the mouse until I got up close to it.

C’mon man, you coulda shared your large jar of peanut butter with Mickey. You didn’t have to do that!

jmonroe

explorerx4

It was over quick, so wasn't much time for it eat.

kyfdx

stickguy said:

at least they pushed RMD start date from 70.5 to 72. With any luck by the time I get there, it will move more!

Roth conversions, I likely missed most of that boat. will probably get some done in a few years if I retire in the 62 range. But likely not enough to make much difference.

so I am going with the "worry about it if I make it to 72" plan. And if I get hammered by taxes on overly large RMDs I don't need, I will do the only logical thing. Complain like crazy, then buy a Porsche.

You know, the RMDs aren't free money? You have to take out $100K (of your money), then pay an extra $35K in taxes. At that point, you have to put the money back into an investment account, as you are now down $35K from where you were before the RMD.

I don't see many retirees buying a Porsche, annually. Especially, after losing $35K of their wealth, each year.

oldfarmer50

stickguy said:

at least they pushed RMD start date from 70.5 to 72. With any luck by the time I get there, it will move more!

Roth conversions, I likely missed most of that boat. will probably get some done in a few years if I retire in the 62 range. But likely not enough to make much difference.

so I am going with the "worry about it if I make it to 72" plan. And if I get hammered by taxes on overly large RMDs I don't need, I will do the only logical thing. Complain like crazy, then buy a Porsche.

I’m trying to convert the last of my taxable accounts into my Roth. As someone mention, it’s harder to do as the market goes up but I’m about 4 years away.

That aforementioned retirement job is a godsend as you can contribute up to your total earnings. Even a minimum wage 20/hr. per week job is enough to get close. I’m usually able to contribute the max for my wife and myself.

oldfarmer50

explorerx4 said:

Victory is mine! Got the mouse. Peanut butter did the trick.
I noticed on of the traps had moved but it was kind of under the car, so I didn't see the mouse until I got up close to it.

Better reset that trap. Where there’s one, there’s more.

snakeweasel

imidazol97 said:

snakeweasel said:

imidazol97 said:

A Medicare B price chart: notice the unfair big step for anyone married filing separately
which sometimes gives large tax savings on Federal returns. It's like an ADM on
Medicare that others don't pay.

While married filing separately can give tax savings the smart bet would be that for any one couple it wouldn't. It's rare when a married filing separate saves you in taxes.

When you include Ohio's income tax structure with some specific benefits that
phase out at higher incomes for married/jointly folks, it can work out except
for the progressive pricing on Medicare.

I cannot speak for Ohio tax laws but for Federal if you file separately all the brackets and phase out limits are cut in half are cut in half. Plus you will lose some possible credits and if one itemizes they both have to itemize. I also know that in some states (not sure if in all) you can file separately for state even though you filed jointly for Federal.

snakeweasel

oldfarmer50 said:

explorerx4 said:

OH doesn't tax SS income but CT does. That's going to save me some money.

Neither does NY and they don’t tax state pensions either. Otherwise I’d have to find a state with no income tax like Florida.

Illinois doesn't tax retirement income either. But still may move to Florida, it has better winters.

snakeweasel

kyfdx said:

laurasdada said:

kyfdx said:

The tax thing seems like a rich person problem, but we are far from that, and we could get a massive tax hit. I sort of wish I hadn't penciled it out, now.

I always felt good about the Roth conversions, as they seemed substantial. But, it's like peeing in the ocean. It helps, but won't fix the problem.

Which problem does peeing in the ocean fix? Water a bit too blue for ya?

Those last two sentences don’t relate to each other. Each relates independently to the first sentence in the paragraph.

I just read Joyce’s Ulysses, recently, so I’m no longer bound by proper paragraph construction. 🤣😂😂

What do you mean no longer?

laurasdada

stickguy said:

I also read a bunch about tax advantaged states for retirement. Wife doesn't want to move to any of them. NY is actually IIRC somewhere in the middle but not going to be great. Should have looked at New Hampshire more but that does not help much being close to family. Plus it is cold.

Who's going to tell Stick that the Albany area is also cold?

oldfarmer50

laurasdada said:

stickguy said:

I also read a bunch about tax advantaged states for retirement. Wife doesn't want to move to any of them. NY is actually IIRC somewhere in the middle but not going to be great. Should have looked at New Hampshire more but that does not help much being close to family. Plus it is cold.

Who's going to tell Stick that the Albany area is also cold?

He should come back up this week. It’s going down to the teens.

jwm40517

Ky excludes up to $31,110 of pensions and IRAs plus all of your SSA . The only itemized deductions left are home mortgage, contributions and gambling losses up to gambling income reported.

stickguy

we were going to go up to shop again this weekend but did not plan ahead enough. and a few places we actually wanted to see didn't not pop up until Friday.

yes I know it is cold there. But at least it isn't also in the middle of nowhere.

we are going up next weekend, assuming there is something we want to see. Hopefully the weather is nice!

stickguy

kyfdx said:

stickguy said:

at least they pushed RMD start date from 70.5 to 72. With any luck by the time I get there, it will move more!

Roth conversions, I likely missed most of that boat. will probably get some done in a few years if I retire in the 62 range. But likely not enough to make much difference.

so I am going with the "worry about it if I make it to 72" plan. And if I get hammered by taxes on overly large RMDs I don't need, I will do the only logical thing. Complain like crazy, then buy a Porsche.

You know, the RMDs aren't free money? You have to take out $100K (of your money), then pay an extra $35K in taxes. At that point, you have to put the money back into an investment account, as you are now down $35K from where you were before the RMD.

I don't see many retirees buying a Porsche, annually. Especially, after losing $35K of their wealth, each year.

Yes I know how they work. and after taxes are paid it's just money in your bank account.

but keep in mind that you are just paying the taxes you skipped paying starting 45 years (or more) earlier. So the account is going to be a lot higher than if you had done it all after tax from the beginning (and in those days, after tax only covered the contribution itself, all earnings were still just tax deferred.)

whether you end up ahead or behind when it is all over, hard to say. But the agreement from the beginning with the gubbermint was they were going to graciously not tax you when you earned the money, but eventually you were going to have to pay them!

Roth conversions actually mean you are paying the taxes earlier. Just hopefully spread out so you pay more in a lower bracket (and of course, once you do it, future earnings won't be taxed).

imidazol97

TurboTax has failed. Not only does it want to do totally stupid things for the Form 1116, it and the IRS won't take my efile because they say my AGI is wrong on the identity checking portion of the efile program.

The AGI is taken from my 2020 form line 11, from the irs.gov/online services account looking at my transcript of 2020 tax form, and from a letter the IRS sent last fall wanting info. So what's the problem.
A waste of $69. And I spent a lot of time putting in the 40 or so items TT needed.

Worse, I find that the advertised "real person to whom you can talk" is not applicable in the version I bought. Several people think the advertisements are misleading about that. I couldn't even have an expert look over my form before I sent it. I transmitted the data but never heard back.

Is there a better tax software version I should try next year?

imidazol97

Worse than that I cut my chin while shaving.

And we've got a house full of pansies that had to come in out of the cold with 20 or so for the next two nights.

I want Spring back. It's cold in Ohio.

stickguy

I use HR Block (taxcut). Never had an issue, but I also don't do anything fancy (not even sure what form 6111 is!). The AGI check is pretty reliable because they have it from the prior year.

28firefighter

I’m done with TurboTax after this year. It is totally incompetent at handling the rsu side of our compensation.

imidazol97

That was form 1116: foreign tax credits.
I'll try taxcut next year.

laurasdada

stickguy said:

we were going to go up to shop again this weekend but did not plan ahead enough. and a few places we actually wanted to see didn't not pop up until Friday.

yes I know it is cold there. But at least it isn't also in the middle of nowhere.

we are going up next weekend, assuming there is something we want to see. Hopefully the weather is nice!

Southern NH is basically a Boston suburb, even central NH isn't quite the middle of nowhere. Pretty country, up in the Whites.

explorerx4

A lot of NH has Boston real estate prices.
A house for sale a couple of streets over had the usual Open House, then immediately under contract.

tjc78

@28firefighter said:
I’m done with TurboTax after this year. It is totally incompetent at handling the rsu side of our compensation.

We have that to deal with next year as the wife received some that just vested.

I’ve always wimped out and used an accountant. Pricey, yes but it’s one less thing to worry about.