neatokimmo
Dryer sheet wannabe
- Joined
- May 1, 2010
- Messages
- 11
Hi, I need help please.
The short version is, my Mom makes 20K a year. She recently discovered her $900 a month at 66 ss is now going to be $1726 at 62. She is able to draw off my Dad whom she was married for 20 years, who died last year.
She is 62 and I am taking over her finances because she is overwhelmed. I am basically getting all her misc rolled 401Ks in one spot and getting her small stock account straitened out. I'll prepay all her bills a year in advance and give her a monthly allowance (which she won't spend and will hoard but that is just how she is. She lives on $700 a month).
We were told that if she reduced her hours to make 14K a year, she'll get 12 checks instead of 10. 12 checks are more than what she makes at her job. Plus she is excited about the thought of being part time.
So I was thinking about putting her entire paycheck into her 401K. The match isn't great, like 2% but would that take her gross adjusted income down to zero?
I am trying to avoid paying tax on the SS by keeping her AIG + 1/2ss less than 25K.
Are there any pros/cons with putting the whole check in there that I don't know about?
The short version is, my Mom makes 20K a year. She recently discovered her $900 a month at 66 ss is now going to be $1726 at 62. She is able to draw off my Dad whom she was married for 20 years, who died last year.
She is 62 and I am taking over her finances because she is overwhelmed. I am basically getting all her misc rolled 401Ks in one spot and getting her small stock account straitened out. I'll prepay all her bills a year in advance and give her a monthly allowance (which she won't spend and will hoard but that is just how she is. She lives on $700 a month).
We were told that if she reduced her hours to make 14K a year, she'll get 12 checks instead of 10. 12 checks are more than what she makes at her job. Plus she is excited about the thought of being part time.
So I was thinking about putting her entire paycheck into her 401K. The match isn't great, like 2% but would that take her gross adjusted income down to zero?
I am trying to avoid paying tax on the SS by keeping her AIG + 1/2ss less than 25K.
Are there any pros/cons with putting the whole check in there that I don't know about?