Jim and Chris discuss listener questions relating to tax planning at full retirement age, the minus-one method for RMDs, inherited Roth RMDs, and early Social Security.

(9:10) A listener jokes about the state trivia and offers a suggestion for Chris’s benefit.
(11:10) Another listener shares a PSA about delays in online Social Security applications and recommends visiting a local office.
(20:15) Georgette asks whether delaying her husband’s Social Security filing would be beneficial for Roth conversions.
(39:30) Jim and Chris address whether the minus-one method for RMDs was paused during the IRS’s waiver period.
(59:20) The guys answer if inherited Roth IRAs are ever subject to RMDs other than the 10-year deadline.
(1:14:15) George questions whether there are ever good reasons to take Social Security early.

Show Notes: the Slott Report

The post Tax Planning, Minus-One Method, Inherited Roth RMDs, and Early Social Security: Q&A #2516 appeared first on The Retirement and IRA Show.

Chris’s Summary:
Jim and I are joined by Jake and Jacob to discuss listener emails related to asset positioning for retirement and the transition period leading up to it. We break down how we think about asset allocation across account types, what a liquidity account is and why we use it, and how we handle year-end tax planning. It’s all part of how and why our Secure Retirement Income Process focuses on spending needs, not just portfolio performance.

Jim’s “Pithy” Summary:
Chris and I are joined this week by Jake and Jacob for the first in what will likely be a multi-part series—because if you’ve listened to us long enough, you know we don’t exactly breeze through these things. This all started with two listener emails that were clearly related: one asked how to position assets across different types of accounts—Roth, IRA, brokerage, and so on—while the other came from someone in what we call the “transition period,” not quite accumulating anymore but not yet distributing either. We figured it was a perfect opportunity to dig in.

So, we walk through our approach to asset management, why we don’t believe in being dogmatic with account assignments, and how we use the Fun Number and Minimum Dignity Floor as anchors when planning for retirement spending—and why trying to map out every distribution years in advance is a fool’s errand. Instead, we focus on creating a flexible structure that can adapt as life throws curveballs. I share why I’m a fan of the liquidity account concept, Jake dives into how we handle tactical tax planning each fall, and Jacob brings his Jello-themed wisdom to the world of asset positioning.

Chris keeps us on track (mostly), but yes, there’s a brief derailment involving a questionable turn of phrase on my part—and now Jake and Jacob have recorded evidence of me offering them raises.

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Jim and Chris discuss listener questions relating to Social Security, origins of the RMD age, the tax planning window, and RMDs from Inherited Roth IRAs.

(11:00) Georgette asks how to qualify for child-in-care survivor benefits if her ex-husband, who has been missing for seven years, is legally declared deceased.

(23:00) A listener wonders when to file for her Social Security benefit to ensure no reduction in the first payment.

(32:00) The guys share a listener’s PSA about why the IRS originally chose age 70½ as the starting point for RMDs.

(46:30) A listener questions whether the tax planning window should actually end at age 63 due to potential IRMAA impacts.

(59:45) George is puzzled by an Ed Slott newsletter discussing RMDs from Inherited Roth IRAs.

The post Social Security, RMD age, Tax Planning, and Inherited Roth IRAs: Q&A #2515 appeared first on The Retirement and IRA Show.

Chris’s Summary:
Jim and I are joined again by Jacob as we discuss listener emails about “unicorn” status—our term for retirees whose Minimum Dignity Floor and Fun Number are both covered by secure income. We clarify what qualifies as secure income and explore whether a very low withdrawal rate from a conservative portfolio might serve as a substitute. We also touch on when rental income might count and how longevity risk influences planning.

Jim’s “Pithy” Summary:
This week’s EDU is a dialog episode—where we take listener emails and use them as a jumping-off point to talk through the philosophy behind our approach. Chris and I are joined again by Jacob for a discussion on what it really means to be a “unicorn,” our nickname for retirees whose Minimum Dignity Floor and Fun Number are fully covered by secure income sources.

We get into why secure income isn’t just about predictability, but also about risk pooling, inflation, and longevity. One listener asks whether having an ultra-low withdrawal rate from a conservative portfolio might be good enough—and we talk through that with real-world examples, including a client case Jacob and I worked on. I also go off on a bit of a tangent (as I do) about SPIAs, mortality credits, and why I’m setting up a donor-advised fund that’ll stick around long after I’m gone.

If you’ve ever wondered whether it’s worth striving for unicorn status—or how to think through portfolio-based income—this is one of those conversations that gets to the heart of how and why we plan the way we do. Plus, you get to hear me throw a few curveballs at Chris and Jacob, which is always fun.

The post Defining Unicorn Status in Retirement: EDU #2515 appeared first on The Retirement and IRA Show.

This week’s is a bit of a non-traditional Q&A episode where Jim and Chris address two listener questions on Social Security but then move into Public Service Announcement mode. For the first PSA they discuss a listener email about a potential state-level Roth conversion tax saving strategy. Then, to wrap up the episode, Jim shares a continuation of the payday loan saga from last week. Jim and Chris are also joined by Jacob Vonloh from the office (who you have heard Jim mention many times), who shares a scam he recently encountered himself.

(13:00) George asks about child-in-care and spousal benefits tied to a disability claim and whether benefits increase if the higher earner delays until age 70.

(28:15) A listener wonders whether it might make sense to claim Social Security now rather than delay to age 70, given the additional spousal benefit that would be triggered.

(40:45) A listener PSA highlights how state-level exemptions may influence Roth conversion strategies.

(49:00) Jim provides a follow-up PSA about his recent payday loan fraud experience.

Show Notes

According to Norton you can help protect yourself by requesting your annual consumer reports and security freezes with the agencies below:

Teletrack: https://www.corelogic.com/support/credco-consumer-assistance/x

FactorTrust: www.transunion.com/client-support/factortrust-consumer-inquiry

Microbilt/PRBC: www.microbilt.com/us/consumer-affairs

Clarity Services: https://consumers.clarityservices.com/securityFreeze

The post Social Security, Roth Conversion Tax Strategy, and Identity Theft PSA: Q&A #2514 appeared first on The Retirement and IRA Show.

Chris’s Description
Jim and I talk about how market downturns—like the one we’re seeing now—can cause people to second-guess their plans, even when they’re well prepared. We walk through how our Secure Retirement Income Process is designed to provide structure and clarity during volatile times, and explain how proper positioning can help you maintain perspective.

Jim’s “Pithy” Description
Chris and I are back this week with a timely conversation—because if you’ve looked at the headlines lately, you’d think the sky is falling. “Boomers in Trouble,” “Retirement Fears,” you name it. Meanwhile, the S&P is down about eight and a half percent from its recent high, and you’d think it was 2008 all over again. I get it. Even folks with millions in savings start to feel uneasy when their statements show a dip. Especially if you’re newly retired and that paycheck just stopped coming.

So we took a step back and talked through why I built the Secure Retirement Income Process and the See Through Portfolio in the first place. It’s not about chasing returns—it’s about helping you see your money clearly. Which dollars are for next year? Which ones are for twenty years from now? That clarity matters. Especially when fear starts knocking.

And yes, I go on a bit of a rant (a productive one!) about how headlines prey on emotions, how panic can sabotage your go-go years, and how, if you’re not careful, you’ll rob yourself of the very fun you saved all those years to enjoy. I even share a new addition to my own bucket list—a historical tour through Italy, inspired by my latest deep dive into Roman history. You think I’m putting that off because the market’s down eight percent? Not a chance!

The post Weathering Market Downturns: EDU #2514 appeared first on The Retirement and IRA Show.

Jim and Chris discuss listener questions relating to spousal Social Security benefits, RMD tax withholding, IRA withdrawals, and 401(k) contribution limits. Jim also shares a PSA about a recent attempt at identity theft.

(20:15) Jim shares a PSA about a fraudulent payday loan application attempted in his name and what he learned about credit freezes and loan monitoring.

(30:15) George asks whether his wife will be subject to the earnings test if she retires mid-year and starts claiming Social Security benefits in the same year.

(39:15) George asks whether tax withheld from his RMD can satisfy IRS requirements for avoiding quarterly estimated taxes.

(47:30) A listener wonders whether taking cash from two small IRAs will result in capital gains taxes.

(1:03:00) Jim and Chris weigh in on a question about the total 401(k) contribution limit for those over age 50.

The post Identity Theft, Spousal Benefits, RMD Taxes, IRA Withdrawals, and 401(k) Contribution Limits: Q&A #2513 appeared first on The Retirement and IRA Show.

Chris’s Summary
Jim and I continue our review of interesting and sometimes confusing retirement planning facts, mostly drawn from Jim’s recent Ed Slott conference. We focus on the two Roth five-year rules and how they apply to Roth IRAs versus Roth 401(k)s. I explain the key distinctions between tax-free earnings and penalty-free access. Jim goes further into how “seasoning” from a Roth 401(k) carries over to a Roth IRA. We also touch on pro rata distribution rules in Roth 401(k)s, the IRS’s strict interpretation of the age 55 exemption, and the unique planning window between 59½ and RMD age.

Jim’s “Pithy” Summary
Chris and I continue our “things that make you go hmm” EDU series with more head-scratchers, funny moments, and some planning tips you’ll definitely want to remember. I came back from the recent Ed Slott conference with a pile of notes, and we dig into the most confusing—and most commonly misunderstood—rules surrounding Roth accounts: the dreaded five-year rules. I walk through both of them, explain how they apply to Roth IRAs and Roth 401(k)s, and we talk about the critical difference between tax-free and penalty-free withdrawals. Then we hit what I think is the big “ah-ha!” moment—the idea of “seasoning” Roth 401(k) dollars. Whether you picture that as a cast iron skillet like Chris or a cracked pepper roast like me, the point is: once a Roth 401(k) is fully seasoned, it keeps its flavor—even after being moved into a Roth IRA.

We also touch on a Roth 401(k) rule that surprises many people: how distributions are treated when they’re not qualified. Spoiler—it’s not like a Roth IRA! Plus, we go over a tax court case involving a guy who thought he was exempt from the 10% early withdrawal penalty and got hit with taxes, penalties, and interest anyway. It’s a cautionary tale, and the court’s response had us both shaking our heads.

Finally, we wrap up with some strategic talk about what Ed calls the “donut hole,” which matches what we refer to in the office as the tax planning window—that sweet spot between age 59½ and your RMD age when there are no penalties, no withdrawal restrictions, and total flexibility in how you tap your retirement accounts. If you’re doing any kind of serious tax or retirement planning, understanding this window is critical. Oh—and yes, there are plenty of food metaphors in this one, because I was hungry the whole show. Hope you enjoy!

The post Roth 5-Year Rules and the Tax Planning Window: EDU #2513 appeared first on The Retirement and IRA Show.

Jim and Chris discuss listener questions relating to Social Security strategies, spousal benefits, Roth conversions, and annuities.

(8:15) George asks whether a widow who was widowed before age 60 has two Social Security claiming strategies available based on the FRA benefit of each spouse.
(20:30) The guys address a question about how spousal benefits are calculated when one spouse took Social Security early and the other has a PERA pension.
(29:30) Georgette wonders how she and her husband should approach Roth conversions given their $4 million in IRAs, her larger balance, and concerns about future RMDs and legacy planning.
(1:03:30) Jim and Chris provide guidance on whether to use current or future spending when purchasing a SPIA to cover base expenses and how laddering might play a role.

The post Social Security Benefits, Roth Conversions, and Annuities: Q&A #2512 appeared first on The Retirement and IRA Show.

Chris’s Summary:
This week’s EDU show is a throwback to an old favorite—things that make you go “hmm.” Jim brought back a list of oddities from the latest Ed Slott training, covering everything from RMD rules the IRS only recently addressed to real-world court cases involving bankruptcy, lottery tickets, and IRA self-dealing gone wrong. Turns out, there are plenty of IRA mistakes you can make—some more ridiculous than others.

Jim’s “Pithy” Summary:
It’s another round of “things that make you go hmm,” straight from my latest trip to Ed Slott’s two-day training. These are the kinds of cases and quirks that catch my attention—some because they’re important, some because they’re just bizarre, and some because they make you wonder why no one’s brought them up before.

Ever wonder what happens if your IRA balance drops so low that you can’t take your full required minimum distribution? Turns out, the IRS finally put something in writing—but it took them long enough to address it.

Then there were some real-world case studies that left me shaking my head. One involved an all-or-nothing gamble with an IRA that didn’t go as planned. Another showed how trying to get too creative with IRA-owned real estate can backfire in a big way. And here’s one you probably haven’t thought about—doing an in-plan Roth conversion in your 401(k) might have unintended consequences that could close the door on a major tax strategy.

We’ll also talk about a handy tool for checking state estate and inheritance taxes—because where you live (or where you move) could have a bigger impact than you think.

Hope you enjoy the mix of useful, surprising, and “you’ve got to be kidding me” moments!

The post Things That Make You Go Hmm – RMD Rules, IRA Mistakes, and Tax Court Surprises: EDU #2512 appeared first on The Retirement and IRA Show.

Jim and Chris answer listener questions on Social Security records, GPO, QCD timing, annuity costs, and excess IRA contributions.

(10:30) Georgette asks about fixing gaps in her Social Security record.

(19:30) The guys discuss how a listener’s spousal Social Security benefits work after the repeal of GPO.

(28:30) George seeks clarification on the timing of QCDs and RMDs.

(53:30) Jim and Chris answer a query about the administrative costs of annuities.

(1:04:15) George faces challenges with excess IRA contributions and MAGI limits.

The post Social Security records, GPO, QCD Timing, Annuity Costs, and Excess IRA Contributions: Q&A #2511 appeared first on The Retirement and IRA Show.