The Retirement and IRA Show

Jim and Chris discuss listener emails on Social Security claiming strategies, deemed military wages, and survivor benefits timing, a PSA from Jim and Chris on their New Year’s resolution, and QLAC use for inherited IRAs. (11:00) A listener asks whether a spouse who will be collecting spousal benefits should ever delay claiming past full retirement age and also asks for retirement drawdown calculator recommendations. (24:30) George asks how veterans can verify that deemed military wages were credited correctly to their Social Security earnings record. (36:00) The guys address whether a surviving spouse can keep both Social Security checks after a spouse dies after being given conflicting answers from the Social Security Administration. (45:00) Jim and Chris share a PSA on their New Year’s resolution relating to estate planning. (1:02:45) A listener asks whether an inherited IRA can be used to purchase a QLAC with payments starting at age 84. The post Social Security, Deemed Military Wages, Estate Planning, QLACs: Q&A #2601 appeared first on The Retirement and IRA Show.

Chris’s SummaryJim and I review new MYGA variations and examine how insurers and product developers are marketing hybrid annuity designs using MYGA language. We walk through four examples from an April 2025 article—“Lockdown,” “Minimum Accumulation Guarantee,” “Extra Extra,” and the “End-of-Term Equity Kicker”—and explain why these products, despite being labeled as MYGAs, rely on index-linked features and do not behave like traditional MYGAs. Jim’s “Pithy” SummaryChris and I spend this episode talking through an article from earlier this year that highlights where the annuity industry seems to be headed. While not all good or all bad it centers on something I don’t think needed fixing in the first place. A MYGA is simple. It’s predictable. It’s easy for people to understand. It looks a lot like a CD (minus the FDIC protection, of course) issued by an insurance company, with a guaranteed rate for a defined period of time. That simplicity is exactly why we use MYGAs in our retirement plans for principal protection to cover near-term spending, including the delay period Minimum Dignity Floor and early Go-Go spending. What the article describes are four designs that are being positioned under the MYGA label, even though they introduce index-linked elements that change how the product behaves. The names alone tell you this is marketing at work. “Lockdown,” “Minimum Accumulation Guarantee,” “Extra Extra,” and the “End-of-Term Equity Kicker” are all attempts to add features that sound appealing while keeping the comfort of the MYGA name. In reality, these designs are borrowing from the fixed indexed annuity world and layering those ideas onto something that was not originally intended to work that way. But I’m not at all surprised that the insurance industry couldn’t leave well enough alone and took something simple and practical and complicated it with these new MYGA variations. The post New MYGA Variations: EDU #2553 appeared first on The Retirement and IRA Show.

Jim and Chris discuss listener emails on Social Security filing timing and online claiming language, a listener PSA on IRMAA and the online SSA-44, ACA income planning before Medicare, an IRA to HSA transfer, and annuity income needs. (6:45) The guys address how to word an online Social Security application so the first check is paid for a specific month when claiming at age 70, and whether applying 2–3 months before the 70th birthday is the right approach. (14:00) A listener shares a PSA on filing SSA-44 online after retirement, including how IRMAA recalculations reflected estimated future-year income and how the resulting tier was communicated in the approval letter. (25:00) Jim and Chris discuss whether it makes sense, from a planner’s perspective, to stop working and manage income in a way that keeps health insurance affordable until Medicare eligibility. (38:45) George asks about doing the once-in-a-lifetime tax-free IRA-to-HSA transfer, how the HSA testing period works, and whether it’s worth doing before starting Medicare to reduce future RMDs. (49:00) A listener asks whether annuity income is still useful for covering a minimum dignity floor gap when assets are high and spending needs are modest, and how to think about guaranteed income given planned retirement timing and gifting goals. The post Social Security, IRMAA, ACA Planning, IRA to HSA Transfer, Annuities: Q&A #2552 appeared first on The Retirement and IRA Show.

Chris’s SummaryJim and I are joined by Steve Sansone as we discuss cash balance plans and explain how they function as hybrid defined benefit plans that present as account-based arrangements. We cover who these plans are designed for, including high-income business owners and professional groups, how age and employee demographics affect feasibility, and why allowable contribution levels can far exceed defined contribution limits. We also outline nondiscrimination rules and how they are applied, employer commitment requirements, and other general setup considerations. Jim’s “Pithy” SummaryChris and I are joined by Steve Sansone as we take a deeper dive into cash balance plans and why they show up in very specific situations, not as a one-size-fits-all solution. Steve explains how these plans sit in the defined benefit world but look like a defined contribution account, which is where a lot of confusion starts. We spend time on who they’re actually built for, why high-income professionals tend to be the ones asking about them, and why the contribution numbers can look startling if you haven’t seen the mechanics before. We also talk through the tradeoffs, because these plans are not free money and they are not magic. Steve walks through how demographics drive everything, why age gaps between owners and employees matter, and how employer contributions to staff are part of the deal. We discuss why, in the wrong situation, these plans can pour fuel on the fire of a future tax problem, and why, in the right situation, they can make sense when paired with intentional planning during the retirement tax planning window before required minimum distributions begin. We frame that discussion around the same planning lens we use elsewhere on the show, including how the 2-1-0 Tax Ordering Number concept helps evaluate whether the front-end tax benefit is worth the back-end complexity. The post Cash Balance Plans Explained: EDU #2552 appeared first on The Retirement and IRA Show.

Jim and Chris discuss listener emails on Social Security spousal eligibility and claiming coordination, a listener PSA on Social Security proof of marriage requirements, RMD planning while still working, money market earnings in brokerage accounts, and using QLACs for long-term care planning.(16:15) Georgette asks whether the repeal of WEP and GPO affects her eligibility for a spousal benefit if her ex-husband worked for the federal government and she did not pay into Social Security. (26:45) A listener asks how Social Security works when one spouse lacks enough work credits for their own benefit and only qualifies for a spousal benefit, including whether both spouses must claim at full retirement age to access that benefit.(42:00) The guys address a PSA on why Social Security may already have proof of marriage on file for one spouse due to a name change but still requires documentation from the other spouse when benefits are claimed.(49:30) Jim and Chris discuss whether maximizing pre-tax retirement contributions and rolling a SEP IRA into a 403(b) can reduce or eliminate RMDs under the still-working exception.(1:06:45) A listener questions the statement that Money Market earnings are minimal, pointing to current yields in a fund they hold.(1:12:00) The guys respond to feedback on whether a QLAC could be an effective way to address long-term care planning when self-funding alone does not feel sufficient. The post Social Security, RMDs, Money Market Earnings, QLACs: Q&A #2551 appeared first on The Retirement and IRA Show.