Dear Liz: We had a plan to make our retirement savings last until our mid- to late 80s. Now we have unanticipated house repairs that could amount to tens of thousands of dollars. Should we draw down our retirement savings and pay the associated taxes at a 22% rate, or take out a home equity loan, […]
Recent Blog Posts
Q&A: Should I name a representative payee in advance?
Dear Liz: My question has to do with a bulletin put out by the Social Security Administration last year requiring people with Social Security income to submit the name of a person to be their advanced designation representative. It also said that you need to submit a name for your ADR annually. Many people probably don’t […]
Q&A: “Superfunding” a 529 account requires filing gift tax returns
Dear Liz: You wrote that people could contribute up to five times the annual gift tax exclusion to a 529 college savings plan without having to file a gift tax return. People can contribute that much without the gift reducing their lifetime gift and estate tax exemption amounts, but they must file annual gift tax […]
Q&A: Should I convert my IRA to a Roth?
Dear Liz: I have $160,000 in a 403(b) retirement plan and I’m 70. I know I have to start taking required minimum distributions (RMDs) at age 73. Should I transfer the funds to a Roth IRA or can I start taking the RMD from the 403(b) and leave the remainder to grow? Answer: You can take your […]
Q&A: You can pause Social Security payments
Dear Liz: Are you allowed to stop your Social Security payments if you choose to make over the $23,000 limit? Answer: When you start Social Security before your full retirement age, you’ll face the earnings test that reduces your benefit by $1 for every $2 you make over a certain limit, which in 2026 is $24,480. You […]
Q&A: How to help grandchildren pay for college
Dear Liz: What is the best way for us to contribute to our grandchild’s college expenses? I believe federal financial aid formulas no longer count grandparents’ cash or 529 contributions. Would direct cash to the student (who is responsible) or a 529 be the most beneficial to the student or us? Answer: If the grandchild is already […]