The Retirement and IRA Show

Jim and Chris discuss listener emails on the SSA-44 and IRMAA process for a couple approaching Medicare, Social Security survivor benefit strategy, tax diversification for young investors, HSA vs. IRA prioritization and spending strategy during the delay period, and inherited IRA RMD rules for non-eligible beneficiaries.

(15:30) A listener approaching Medicare asks how the SSA-44 process applies when one spouse is retiring while the other continues to work, and whether their planned Roth conversions could complicate the IRMAA appeal filing.

(33:15) Georgette wonders whether she can start her own Social Security at 67, switch to a lower survivor benefit if her husband passes, and then return to her own larger benefit at 70.

(41:00) The guys hear from a parent helping his adult children decide whether to convert their traditional IRAs to Roth IRAs or preserve a mix of account types for tax diversification in retirement.

(57:45) Jim and Chris address two questions: (1) whether HSA contributions should be prioritized over IRA contributions for retirement savings, and (2) how to bridge a cash flow gap when brokerage funds run out during the delay period without undermining ongoing Roth conversions.

(1:26:15) A listener asks whether a non-eligible beneficiary who inherits a traditional IRA before the decedent’s required beginning date must still take RMDs, given that the decedent had already taken one RMD in the year they turned 73.

The post IRMAA, Social Security, Tax Diversification, Delay Period, Inherited IRA: Q&A #2620 appeared first on The Retirement and IRA Show.

Chris’s Summary

Jim and I are joined by Dr. Philip Snyder, in what we hope is his first appearance of many, as we discuss what a healthy retirement requires. In this episode we discuss health span versus life span, or how long a person stays vibrant and independent versus how long they simply live. grounded in the idea that a retirement plan is not only about how long money lasts but how long someone is healthy enough to enjoy it

Jim’s “Pithy” Summary

Chris and I are joined by Dr. Philip Snyder as we dig into what a healthy retirement actually means. We say it all the time on this show – we’re not getting younger, stronger, or healthier – but most retirement plans are built around all your retirement years being the same. Maybe only five, eight, or ten of them will be your go-go year where you can truly enjoy spending. That is exactly why we wanted a physician in this conversation who, for the record, genuinely geeks out on retirement.

Dr. Snyder puts some real numbers around how long the average person stays vibrant and independent and how those numbers compare to average lifespan. That gap has direct implications for how you think about your Fun Number and when to spend it. He also gets into specific, measurable indicators that can give you a clearer picture of where you personally stand.

Right now, no tool exists that can do for the go-go window what long-term care software already does for future care costs. That question comes up directly in this conversation and Dr. Snyder has a view on what variables such a tool would actually need, and what could be coming on that front.

Show Notes:

CalcVita Biological Age Calculator

The post Enjoying a Healthy Retirement: EDU #2619 appeared first on The Retirement and IRA Show.

Jim and Chris discuss listener emails on IRMAA appeals, Social Security survivor benefits, a Venn Diagram PSA, Roth IRA spousal rollover and the five-year rule, and Rollover IRA protections.

(8:15) A listener asks whether their parents should appeal an IRMAA surcharge—triggered by a one-time annuity payout—on the basis of loss of pension income.

(17:15) George asks how a serious health diagnosis may affect his Social Security strategy, including whether his wife should claim on her own record now and delay survivor benefits until he would have reached age 70.

(35:30) A listener shares a Venn Diagram PSA

38:15) The guys hear from someone who used spousal rights to roll his late wife’s Roth 401k into his own Roth IRA, and wants to know whether doing so reset the five-year clock on her previously qualified funds.

(54:00) Jim and Chris address whether the ERISA protections of 401k and 403b plans are reason enough to avoid rolling them into IRAs, and whether an umbrella insurance could offer additional Rollover IRA protections.

The post IRMAA, Social Security, Roth 5-Year Rule, Rollover IRA Protections: Q&A #2619 appeared first on The Retirement and IRA Show.

Chris’s Summary

Jim and I discuss the Safe Withdrawal Rate as a projection tool before retirement, but not as the distribution tool we would use for many retirees. We address Bill Bengen’s research, the 1968 retiree scenario, Monte Carlo planning, and why a worst-case floor can limit early retirement spending on fun. We also contrast accumulation planning with distribution planning and explain how the See Through Portfolio helps separate different retirement spending needs.

Jim’s “Pithy” Summary

Chris and I discuss why we think Bill Bengen’s research has real value, while still believing the Safe Withdrawal Rate is the wrong tool once the rubber meets the road in retirement. His work helped advisors move away from unrealistic withdrawal rates, and it can be useful for people still in the accumulation phase who are trying to see if they are on track. But once someone reaches retirement, especially with only so many Go-Go years ahead, I think the tool has to change.

The part I don’t like is when the industry takes a worst-case historical number and turns it into the anchor for everyone. Chris and I talk about Bengen’s own comments, Monte Carlo probability statistics, and why software can make this kind of planning look cleaner than it really is. That may work for some people, especially if the goal is to leave the biggest portfolio possible, but that is not the same as helping someone spend with more clarity while they still have the health, desire, and ability to do so.

That is where our process separates the money allocated for needs, reserves, and later-life planning from the money available for fun. Minimum Dignity Floor, SEAL Reserve, and the Fun Number help frame those dollars differently instead of treating retirement as one big portfolio with one smooth withdrawal path. You are not getting younger, stronger, or healthier, and most people’s retirement goals don’t include being the wealthiest person in the graveyard.

The post Is The Safe Withdrawal Rate Useful? EDU #2618 appeared first on The Retirement and IRA Show.

Jim and Chris discuss emails on Social Security survivor benefit strategies, IRMAA exceptions, Roth conversion timing during market downturns, and the implications of naming IRA beneficiaries directly versus routing assets through a trust.

(8:15) A listener whose husband plans to delay Social Security to 70 while she claims early at 62 asks whether she can still receive the maximum survivor benefit if he passes away before reaching 70.

(19:30) The guys field a question about whether the SSA-44 reduced work exception to IRMAA applies when the reduction in earned income is far too small to bring MAGI below the applicable tier.

(31:00) Jim and Chris address whether it makes sense to front-load Roth conversions during a market downturn so that subsequent recovery gains are captured tax-free.

(1:06:00) George wants to better understand the mechanics a trustee must navigate when distributing IRA assets to trust beneficiaries, compared to simply naming beneficiaries directly on the account.

The post Social Security, IRMAA, Roth Conversions, IRA Beneficiaries: Q&A #2618 appeared first on The Retirement and IRA Show.