[Gigi3000]

Originally Posted by Boomer

Gigi, I love this answer you gave for those who kept saying you should not be asking strangers on the internet for financial advice. . .



You are definitely not an idiot. Idiots do not ask questions. Idiots act like they know everything.

Of course, ‘anonymously’ is the operative word. You have been getting some decent information here that can help to equip you with a working vocabulary, along with your questions, for when you have those in-person conversations with those you need to talk to. (I do not think that bank advisor has your best interests in mind.)

If you and your accountant decide a stretch will work, another factor to consider is that you will reach Medicare age soon. When you are on Medicare, if you receive a big influx of income, it could raise your AGI to the number that causes IRMAA to kick in.

IRMAA is the acronym for Income-Related Monthly Adjustment Amount. If your AGI crosses the IRMAA threshold, two years after that, you will have to pay more for your Medicare Part B and/ or Part D for that year.

IRMAA is based on AGI, not taxable income, and it is an either/or scenario with no adjustment for how far in your AGI gets to triggering the increase.

This might not be significant in your situation, but you might want to ask the accountant to factor it in to find out. If taking the stretch, it could be worth adjusting the timeline. But it might not make a difference worth considering. Be aware, just in case. At least you would not be surprised if a premium increase shows up two years after an increase in AGI.

(IRMAA catches people sometimes who have to take a big chunk of change from their IRAs due to their RMD. Using a QCD as a part of the RMD can help in some situations. . .uh, oh, I digress. . .I do not know what in the hell is the matter with me. . .That was extraneous information. . .I cannot figure out why I like to talk about taxes???)

Anyway, I am happy to see that you are so much better ready to handle this. Anonymous questions can work out well. People who ask questions can be helped by getting answers to weigh and explore further. Those answers, sent anonymously from this end, are showing you what your further questions need to be.

(This really is an interesting thread, both about money and the psychology that can surround it.)

Boomer

Thanks Boomer! I'll definitely ask the CPA about the IRMAA thing!

[Boomer]

Originally Posted by Two Bills

IRMMA's, RMD's, IRA's QCD's, AGI's!!
It's very complicated being an American with a few bob in the bank.
Much simpler here in UK.
We have it all in cash, hide it under the bed, and plead poverty!

Two Bills, you always make me laugh. Nobody has mastered wit like the Brits.

About those abbreviations you hit back into my court — they came with a memory of another time when that happened to me. . .

I have a thing about wanting more women to get a handle on understanding the money in their lives — and I am not talking about the grocery budget.

Anyway, I was going to hear a speaker talking about women and money and retirement. My daughter Boomette is only 20 years younger than me so I thought it was definitely time for “the talk” because I wanted to make sure she knew the facts of money-life. I invited her to come with me and she asked if she could bring a friend. . .

I was thrilled to have two young career women wanting to know more about retirement planning, etc.

The talk was a good one. It even got so far as getting into handling RMDs. (My two guests were not even close to retirement age yet, just trying to plan for it.)

That was when Boomette’s friend slid a cocktail napkin over to me. On it, she had written, “RMD? QCD? WTF?”

Boomer