My calculation below (in another post) may not fit all of you and it could be even contain incorrect tax bracket (which change every several years)
But my key point is clear (and I think it is right): When your "other-than-SS benefit-income" get higher, you pay not only tax on this income, you also have to pay additional tax on your SS benefit (which you don't have to pay any tax when your other income is lower).
So at centain point, you will see the bloody fact as "for every $1000 you withdraw from your 401K, you can only keep less than $600* for yourself."
* the exact amount will depend on a) tax bracket at the time when you retired, c) How much you withdraw from 401k/year, c) Your other income (rental, interest, capital gain, pension etc.)
===
So the point is clear, but the solution in unclear!
Here is the question for your guys:
Knowing that that is such penalty for SS benefit when you have high "other income", what is the best way to avoid it? Your suggestion is really appreciated.
2) If I wait until I retired, the only short window is between my retirement year to the year I collect SS benefit (4-5 years) which is too short so I have to transfer too much per year.
My calculation below (in another post) may not fit all of you and it could be even contain incorrect tax bracket (which change every several years)
But my key point is clear (and I think it is right): When your "other-than-SS benefit-income" get higher, you pay not only tax on this income, you also have to pay additional tax on your SS benefit (which you don't have to pay any tax when your other income is lower).
So at centain point, you will see the bloody fact as "for every $1000 you withdraw from your 401K, you can only keep less than $600* for yourself."
* the exact amount will depend on a) tax bracket at the time when you retired, c) How much you withdraw from 401k/year, c) Your other income (rental, interest, capital gain, pension etc.)
===
So the point is clear, but the solution in unclear!
Here is the question for your guys:
Knowing that that is such penalty for SS benefit when you have high "other income", what is the best way to avoid it? Your suggestion is really appreciated.
additional tax on SS benefit.
Please let me know if it is clear to you.
" "for every $1000 you withdraw from your 401K, you can only keep less than $600* for yourself."
absolutely wrong.
账面穷，实际富的流油，人家早就明白怎么省稅啦，而且是省的大头。
The number is not accurate.
The best is if you can make you own calculation (based on your own situation)
the best way.
既然不符合资助标准为啥要去填啊
though it also has big limitation as
1) I cannot do it while I am still working,
2) If I wait until I retired, the only short window is between my retirement year to the year I collect SS benefit (4-5 years) which is too short so I have to transfer too much per year.
Any other suggestions?
are you able to take less 401K in one year and more 401K in another year to minimize the tax? THX
convert to roth ira
Yes, you can and definitely you should.