Dear Liz: I know from personal experience after selling a longtime residence that tax return information is shared with the Social Security Administration. If the two-year look-back shows high enough modified adjusted gross income, Medicare premiums can increase significantly. There are appeal options, but a one-time home sale doesn’t necessarily qualify. Should the couple consider a […]
Recent Blog Posts
Q&A: Can you tap your equity without triggering capital gains?
Q&A: Why selling a valuable home can cost more than you think
Dear Liz: Why do you seem to discourage older people living in homes that have appreciated over the years from selling because of the tax consequence? Recently, someone complained they could not move out of their family home because they would owe $400,000 in taxes. Why don’t you show the math: If they owe $400,000, even […]
Q&A: Can you convert an RMD to a Roth IRA?
Dear Liz: I’m supposed to start required minimum distributions soon. Can I deposit my annual distribution into a Roth IRA? I understand that I have to pay taxes on the RMD, but if I can put it in a Roth, I would guess I don’t have to pay future capital gains taxes. I am retired and […]
Q&A: Why you might want to skip your IRS tax refund
Dear Liz: I’ve heard too many delayed refund stories to trust the process, so I always request that my overpayment be applied to the following year’s taxes, which allows me to stop withholding on IRA required minimum distributions via Form W-4R and stop making estimated tax payments until I’ve “used up” the amount of my refund. […]
Q&A: Should you give your kids their inheritance early?
Dear Liz: My wife and I are 68 and 69, respectively, have been retired for more than a decade, and enjoy a comfortable retirement income from my pension and her Social Security (I’ll take mine at 70). We have no mortgage and enjoy steady growth in our retirement savings, which we rarely touch. Both of our […]
Q&A: Do you need a new will when you move to another state?
Dear Liz: I have a will, properly done by an attorney, in my home state of Texas. I’m thinking of moving to California. Will the state of California recognize and accept my will? Answer: The short answer is yes, but you should consult a California attorney anyway. California generally recognizes a will that was valid under the […]

