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Liz Weston

Companies’ deceptive ‘dark patterns’ online cost you money — here’s how to fight back

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See if any of this sounds familiar:

● You can’t find an easy way to cancel an unwanted subscription, so you let it continue for another month — telling yourself you’ll try again later.

● You feel rushed into an online purchase you regret, but there’s no option to undo the transaction or demand a refund.

● You want to read an article or shop at a store online, but you’re bombarded with pop-up requests for your data. There’s no easy option for saying no, so you click “allow” just to get the annoying pop-up out of the way.

These are just a few examples of “dark patterns” — intentionally deceptive designs that companies use to steer people into making choices that aren’t in the consumers’ best interest.

Dark patterns may sound like a feature of sketchy websites, but these manipulative practices are a common way mainstream companies dupe people into sacrificing their privacy or paying for stuff they don’t really want. In my latest for ABC News, learn how to fight back companies’ deceptive ‘dark patterns.’

Q&A: Roth IRAs and taxes

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Dear Liz: I sold some stocks from a Roth IRA to pay for some bad debts. Is this going to count as taxable income for this year?

Answer: You can always withdraw the amount you contributed to a Roth IRA without owing income taxes or penalties. For example, if you withdrew $10,000 but your contributions over the years totaled $10,000 or more, then you didn’t incur taxes or penalties.

You also won’t have tax issues if you withdrew more than your contributions but are 59½ and have had the account for at least five years. If you’re old enough but haven’t had the account long enough, you’ll pay income taxes but not penalties on the part of the withdrawal that exceeded your contributions — in other words, on the earnings.

If you’re under 59½, you could be subject to taxes and penalties on any earnings you withdrew. Please consult a tax pro for details.

Q&A: What happens to joint credit cards after your spouse dies?

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Dear Liz: My husband died last year and we have three credit cards in his name with me as authorized user. When applying for new credit, do I still use his name or my name now? And should I remove his name and put my name only on all accounts?

Answer: You’ll apply for new credit in your own name, using your own credit history and income. If your credit cards are joint accounts, you can simply ask the issuers to remove your husband’s name.

Here’s the thing, though: Few credit cards these days are joint accounts. Typically there is a primary cardholder and an authorized user. When the primary cardholder dies, credit card issuers usually close the account, often within a few weeks.

Issuers normally find out about the death from the person settling the estate or from the Social Security Administration. Social Security, in its turn, usually learns about the death from the funeral home or from the person settling the estate.

It’s possible there has simply been an oversight, but you’ll want to make sure your husband’s death has been properly reported to Social Security and his creditors. If you are an authorized user rather than a joint account holder, you may find the card issuers will work with you to get replacement cards although you may have to settle for a smaller credit limit if your income has dropped (which is unfortunately a common situation for survivors).

Q&A: IRA investments and minimum distributions

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Dear Liz: I have an IRA invested in stocks, bonds and Treasury bonds. I’m 60 now and am hoping to retire in a few years. When I stop work and start pulling money from my IRA, can I withdraw a security or Treasury bond? Or must I first sell the security or Treasury bond, and then withdraw cash? I ask because I’ve recently purchased 30-year Treasury bonds (as well as Treasury Inflation-Protected Securities, or TIPS). Once required minimum distributions kick in, I’d prefer not to sell a Treasury bond or TIP, if I don’t have to.

Answer: First, you should know that you have several years before your first required minimum distributions will be due. Because you were born after 1959, the age at which you’re required to start taking minimum distributions from most retirement accounts is 75. (The RMD age used to be 72, but it’s currently 73 for those born between 1951 and 1959 and 75 for those born in 1960 and later.) You can take penalty-free distributions from retirement accounts as early as age 59½, but the increase in RMD age can be advantageous for good savers who don’t need the money and want to allow their tax-deferred retirement funds to continue growing.

Most people take their required distributions in cash, but you’re allowed to take them “in kind” — in other words, you can transfer your stocks and other investments from your retirement account to a taxable brokerage account.

There’s no tax advantage to in-kind transfers and they can be tricky because the value of investments can change day to day, unlike cash, said Mark Luscombe, principal analyst for Wolters Kluwer Tax & Accounting. If the investments’ value on the day of distribution is less than your RMD, you’ll need to make up the difference in cash to avoid penalties.

This week’s money news

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This week’s top story: 2022 mortgage applicants sought larger loans, faced deeper debt. In other news: 5 roadblocks to improving credit, reframe gift traditions, and a passport renewal by mail.

2022 Mortgage Applicants Sought Larger Loans, Faced Deeper Debt
A look at 2022 mortgage application data from the Consumer Financial Protection Bureau shows some of the initial effects of these higher-and-higher rates.

Knock Down These 5 Roadblocks to Improving Credit
A new NerdWallet survey finds that half of Americans have barriers to improving their credit. Here’s how to get past them.

One Way to Reduce Holiday Stress: Reframe Gift Traditions
Consider ways to make gift-giving with family and friends a smaller and less expensive part of the holidays.

Do I Have to Renew my Passport by Mail?
Most passports can only be renewed by mail. That might be convenient for some — and stressful for others.

Taking these financial steps could help post-divorce recovery

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Jamie Lima remembers his divorce six years ago as one of the most emotionally draining and financially challenging experiences of his life. As a result, he resolved to use his professional background as a certified financial planner to help other people going through similar situations.

“I want to make sure other people don’t step on the same land mines and be an advocate for them,” says Lima, founder of the Ramona, California-based Allegiant Divorce Solutions, a financial planning company that helps people going through divorce.

While the financial aspect of divorce is often overshadowed by the emotional impact, rebuilding finances after the dissolution of a marriage can be an integral part of overall recovery. In Kimberly Palmer’s latest for the Seattle Times, learn steps to navigate the financial challenges post-divorce.