Dear Liz: Is it true that when you start your required minimum distributions from 401(k) and 403(b) plans, you give up your monthly Social Security payment? I plan to start RMDs next year at age 71 thinking I will get less money for more years. Answer: Your withdrawals from retirement plans won’t reduce your Social […]
Recent Blog Posts
Q&A: Future mate hasn’t filed tax returns. Am I liable?
Dear Liz: I’m engaged to someone who just confessed that they have not filed tax returns for the last several years. How do we fix this? If they owe a lot of money, could the IRS come after me if we’re married? Answer: Technically, debts incurred before marriage are considered separate. But there are many […]
Q&A: Financial institutions reject powers of attorney
Dear Liz: I read your column about the parent who unexpectedly had to take over for their incapacitated son. You suggested every adult have a power of attorney and healthcare proxy. Excellent advice! However, as I discovered in dealing with my father’s illness and estate, these general documents are not always recognized by the very […]
Q&A: When money disappears from a mother’s estate
Dear Liz: My mother recently passed and my sister is handling all the legalities. At one point, my sister mentioned our mother had a sizable savings account plus two retirement accounts valued at $400,000, and that I would receive something. Now she is simply saying, “I don’t know where the money has gone.” She handled […]
Q&A: Counting freeloading relatives as a hardship? Not so fast, the IRS says
Dear Liz: I lived in a house for 45 years. During that time, my daughter and her family moved in due to the 2008 financial crisis. I have not charged her rent. However, I moved out five years ago, and her family is still there rent-free. I understand that when I sell, I will owe […]
Q&A: Spousal and survivor benefits operate by different rules
Dear Liz: I believe you provided bad information to the woman inquiring about Social Security spousal benefits for her husband. You suggested to her that since she was the higher income spouse, that she wait until age 70 to maximize the benefit her husband could receive. I used to think that was the case as […]