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Good video. Your points are valid. A couple of comments. Unless you are converting at zero tax which means the break even is immediate, it’s hard to calculate a break even without knowing what future tax rates will be, when you and your spouse will die, what the growth of your accounts will be, inflation impact to tax brackets and IRMAA surcharges and your heirs tax bracket when you die. The points about IRMAA and Cap gain harvesting cut both ways. If you are 63 or older the income from the conversion can cause an IRMAA surcharge and at any age where your income is in the 12% bracket a conversion could cause your dividends and cap gains to be taxable (if it bumps you up to the 22% bracket). On the other hand converting could avoid IRMAA surcharges when taking RMDs. You need to make some assumptions but can estimate your future tax rate.

Great video. Love Fritz and Dana!

I recently reallocated my Roth IRA to 50% SCHD, 25% SCHX, and 25% SCHG. For my Roth 401(k), I’ve set it to 70% Vanguard S&P 500 Index, 20% Vanguard Growth Index, and 10% Vanguard International Index. I’m aiming to grow my $350K portfolio to over $1M within the next three years before retirement. Open to suggestions for the best strategies to achieve this goal!

I filed my 2023 tax return on Oct 14, 2024. It was approved by the IRS. However they used my 2022 tax return information for my 2025 IRMAA calculation. I am being told by the local SS office that I have to file form SSA 44. However this isn't a qualifying event. Do I need to complete the form? Thanks.

So the pension is seeing as an income once someone who paid into their pension retires?

when you dont have to pay any taxes..that is enough...

Healthcare costs in retirement seem like a huge financial trap. I read they could total over $300,000 for a couple. How are we supposed to plan for that?

A lot of people underestimate how much they’ll need. Between Medicare premiums, long-term care, and out-of-pocket costs, it can add up to hundreds of thousands of dollars over retirement.

I’m starting to get worried about healthcare costs in retirement. I’ve heard they can really eat into savings, especially as we age. Any ideas on how to prepare?

I retired August 2024, paying IRMAA based on 2022 MAGI. When I fill out SSA-44, I will report 2024 MAGI that’s higher than my 2022 MAGI. Will this cause me to have to back pay the difference in IRMAA for the 5 months of IRMAA already paid in 2024. If so can I just start SSA-44 request for 2025 (which est. MAGI will be below IRMAA levels) and not 2024 even though I retired in 2024?

I retired in June of 2024, but the first year that my income will decrease enough to make a difference in IRMAA will be 2025. Should I wait until January 2025 to submit my SSA-44, with 2025 estimated income in Step 2, or can I file now (December 2024)? It seems that other commenters had the same situation and was wondering if anyone received a clear answer. My local SSA office isn't making in-person appointments. Thank you!

What about a situation like mine, Disability Retired. The Xmas 2022 Blizzard/Storm was a FEMA declared Natural Disaster in my area. I sustained extensive damage to my home. While insurance covered a good deal, there were many out of pocket payments I had to make. So, in 2023, I took out $150K from my Traditional 401K to help cover these costs. $30 K was immediately withheld for taxes. In November 2024, I received an IRMAA Notice from SSA. This is entirely based on the lump sum withdrawal from my Traditional 401K, which only occurred due to extensive damage sustained in the XMas 2022 Storm. I completed SSA-44, but admitted to SSA I wasn't sure whether I did so accurately. I submitted all the relevant canceled checks, insurance checks and correspondence, etc. A week later, I receive in the mail from SSA the CD of evidence I mailed with my SSA-44, and a new form SSA-44 to complete without any letter explaining to me what to do. I presume I didn't complete the SSA-44 accurately. I will call and see if I can schedule an appointment. I submitted my Tax Forms from 2020 through 2023. In Step 2 of the original SSA-44 I submitted, I used 2022, the year before the tax year they base my IRMA, and listed my only sources of income as Pension & SSA. The same would be true for years subsequent to 2023, except COLAS. I used 2022 Tax Form thinking it would be a reliable estimate of my income moving forward. In Step 1, I listed Loss of Income Producing Property due to the damage to my home from a Natural Disaster. Perhaps, Step 1 is my issue. Is my home income producing property? I live in it. I've been in Disability Retired status for a few years. So, putting Work Stoppage in Step 1 didn't seem to make sense. Do I meet any of the criteria in Step 1 to reduce IRMAA? It certainly seems as though I should. But for the Natural Disaster, and I submitted a FEMA Document showing where my region was declared a Natural Disaster by FEMA, I would have never had to make the large lump sum withdrawal from my Traditional 401K. Ordinarily, my only income each year is Pension and SSA. Based on your video, I should put 2025 as the year in Step 2, and estimate what my SSA and Pension may be in 2025 with COLAS? Many folks experience this predicament, having to tak unanticipated lump sum from Traditional IRA/401K to cover damage to home from a Natural Disaster. If I do not qualify under Step 1 by loss of income producing property, should I put Work Stoppage? At any rate,I appreciate any input you may provide. Thank you.

Dana and her guests are the crème de la crème of the financial planning industry. She has a unique blend of creativity and a superior understanding of how important numbers impact the financial planning process.

Great job!!! Thank you

but i need to figure out magi for THIS year 2024 because my husband stopped working. this doesn't help me

As per the recommendation in the video, I called SSA yesterday, and was able to scheduled an appointment for today. Went into their office and we were able to have our SSA-44 form approved over the counter in approximately 10-minutes. They also stated that we shall receive a confirmation letter from them in approximately 10-days. Great video and thank you very much!

My local office also accepts faxes of the form and supporting documents.

Thank you! Thank you! Thank you! The is THE BEST explanation of filling out the SSA-44 that I've found. Very clear and thorough explanation using simple but concrete examples. You also cover handling the situation of having to file the SSA-44 for two separate years following retirement.

Thank you. This is very thorough but I'm left with one question. The instructions to STEP 1 say "[t]he life changing event must be in the same year or an earlier year than the tax year you ask us to use to decide your income-related premium adjustment." My husband retired in 2023 but late enough in the year that there was not a big difference in income between 2022 and 2023. We received our IMRAA notice in late 2023 stating we owed IRMAA. We each filed our request for a new IRMAA decision using our anticipated 2023 MAGI in STEP 2 and projected income in 2024 in STEP 3, which was projected to be below the IRMAA threshold. SSA denied our initial request saying they couldn't use a future year to use for our IRMAA and to file in 2024 to use 2024 income. We did and our request was granted, and we did not pay IRMAA in 2024. We just received our 2025 notice saying we owe IRMAA for 2025 based on my husband's 2023 income. Our 2024 income is below the IRMAA threshold and 2025 will be the same. So in STEP 2 do we use 2023 MAGI in STEP 2 (this doesn't help us avoid paying IRMAA) and check "Yes" in STEP 3 and put in our 2024 projected MAGI in STEP 2 OR do we use 2024 MAGI in STEP 2 and check "No" in STEP 3?

Always the best from the best, thank you very kindly!

Advantage plans are also available as PPO plans. They are not all HMOs. With a PPO, you ae not required to obtain care from in-network providers, and also would not need a referral to see a specialist. Out-of-network care with a PPO plan will often result in higher patient copays, than if they stay with in-network providers. All Advantage plans are required to cover urgent or emergency care nationwide, at in-network copays. Non-urgent/emergency coverage when travelling will vary, depending on the Advantage plan. Many PPO plans will cover it.

I’d be retiring or working less in 15 years, and considering this financial recession, I’m deciding to begin taking up skilled trades. I’m curious to know best how people spilt their pay, how much of it goes into savings, spendings or investments, I earn about $140k per year but nothing to show for it yet.

There was no mention of HECM. I am wondering why ...

Great video, thanks Dana!

Great information. Really appreciated the Q&A. Thank you!

Thank you for your time and great content! Well done!!

Just what I needed to learn and understand. THANKS

This girl is gorgeous.

I sold a rental home NOW my socIal security is MINUS $450 A MONTH !!!! WHEN DOES THAT 'THEFT" STOP ?????? HOW MANY YEARS IS THE $450 TAKEN ?

How common is recast and what ARE the cost to recast

Thank you for this helpful video. Question: If you are let go from your job at the end of November 2024 (i.e., work stoppage occurs in the last month of the year) … should you wait and file the SSA-44 in January for 2025?

Do you sell access to your modeling software?

Question - is one better off overstating your income for subsidy and collecting credit at the end of the year when true up occurs? Asking only because I'm trying to understand if a deeply subsidized policy is treated unfavorably by insurance/ providers. Would providers be hesitant to accept subsidized policies? Thanks

Thank you for sharing. Financial education is crucial today to show incredible resilience and discipline in the volatile market, masterfully balancing strategy and insight for success. This dedication to continuous learning is inspiring...managed to grow a nest egg of around 200k to a decent 632k in the space of a few months... I'm especially grateful to Evelyn Infurna, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.

Don’t own mutual funds in taxable brokerage accounts. They are pass thru structured entities. Use ETFs (each investor is more properly assessed the capital gains due to them). Also good are individual stocks.

Great video, very simple to follow and helpful information!

Is this something seniors who retire will have to do for two years in a row? So submit again the next year until the taxes are reflecting the new income?

Sensible Money has excellent content and many essential learning points in this discussion. I hope Dana revises her outstanding book in 2026 or 2027 when the upcoming changes or lack of them occur. Her ability to drill into the pertinent details of a financial plan is value-add par excellence.

What happens to escrow when you recast?

Regarding the strategy to pay the tax at the end of the year by taking an IRA distribution equal to the estimated tax due and withholding 100% of it: it is important to note that if you are younger than 59.5yo, the distribution is considered non-qualified and will be subject to a 10% penalty.

at 54:30. Saving taxes may not always be the best way to optimize at these scenarios especially if considering Roth conversions. The best thing to optimize is after tax account values.

I had to chuckle about the savy 'cash flow' couple. I am also in a (temporary 3 year) situtation where my cash flow is higher than my taxable income. My cash flow is at 125K, as my adjusted gross income is $66K. It does not get much better than this.

If Trump gets elected, and Senate / House, Social Security / Tips will not be taxed and expect an nice upward adjustment to the standard deduction, offset by a general 10% tariff on all non taxed internal goods. A tariff is just a value added tax, the most common form of taxation in the world.

Let's hope President Trump gets back in so the tax brackets do not revert back. If they do revert everyone will be affected not just those making 400k or more like the left wants you to believe

Stop saying 'utilized'. Just say 'used'.

With Roth IRA, the money you are contributing has already been taxed. At any time for any reason, you can withdraw your contributions tax-free and penalty-free. Additionally, any earnings on investments can also be withdrawn tax-free and penalty-free, Not sure how much to contribute, I'm still at a crossroads deciding if to liquidate my $338k stock portfolio.

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family

Very helpful! Attended live and now listening again.

I converted a lot when the stock price was way down. The profit I have made since then in my Roth more then covers what I paid in taxes.

Retired and loving it.