(k) to a brokerage account. Your heir can sell the stock immediately and pay capital gains tax on the proceeds, not income tax. Further, your heir gets favorable treatment when it comes to how that gain is calculated. They don't pay capital gains tax on the full appreciation of the ...
When you reach the age requirement, the government says you have to take out a specific amount from this retirement money each year (RMD). Let’s say the total of your RMDs for the year is $60,000, but you can have $80,000 of taxable income before you move into a higher bracket....
While a portion of your benefit is, in fact, withheld for the earnings, there is an eventual “payback”… when you reach FRA, your reduced benefit is recalculated, eliminating those months when your benefit was withheld. The recalculation is done as if you delayed filing for the number of...