We're new - our plan is iffy?
- Thread starter RHONDAVE
- Start date
RHONDAVE -
Your tax estimates are too high.
SS payments are not fully taxed. Only part of that income is taxed - based on your total taxable income.
If you're basing your tax load on your gross vs net you need to look at taxes you do NOT owe when you stop working. SS and Medicare. That's a big chunk of the payroll deductions.
As Athena mentioned - earned income, while collecting SS early (pre full retirement age) is something you need to be careful with. DH was called back to work after his replacement quit with no notice. (He was an architect - project was in the last 6 months - they desperately needed someone to close out the project who knew the details.) We got burned - SS clawed back their payments and we had some months of no checks because he earned enough to impact the SS payments. The income limit is around $15k. Anything earned over $15k will reduce your SS.
Will I Get Penalized for Working While Collecting Social Security Retirement? | Nolo.com
All of this is good news for you. Since you're overestimating tax payments you can either work less or withdraw less. Good options to have.
Your tax estimates are too high.
SS payments are not fully taxed. Only part of that income is taxed - based on your total taxable income.
If you're basing your tax load on your gross vs net you need to look at taxes you do NOT owe when you stop working. SS and Medicare. That's a big chunk of the payroll deductions.
As Athena mentioned - earned income, while collecting SS early (pre full retirement age) is something you need to be careful with. DH was called back to work after his replacement quit with no notice. (He was an architect - project was in the last 6 months - they desperately needed someone to close out the project who knew the details.) We got burned - SS clawed back their payments and we had some months of no checks because he earned enough to impact the SS payments. The income limit is around $15k. Anything earned over $15k will reduce your SS.
Will I Get Penalized for Working While Collecting Social Security Retirement? | Nolo.com
All of this is good news for you. Since you're overestimating tax payments you can either work less or withdraw less. Good options to have.
travelover
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Mar 31, 2007
- Messages
- 14,328
No need to guess - run your numbers through Taxcaster and get a real answer.
pb4uski
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
.... Thanks for all the input and take it easy on us-were new here,
You'll find a lot of tough love here... get used to it.
23window
Dryer sheet aficionado
- Joined
- Dec 18, 2015
- Messages
- 27
Welcome. I'm in a similar situation as you, except I'm a couple of years behind you and already live in the Phoenix area. You should check out Zillow or similar websites to see what kind of house you can get here for $200k. I love living here, but I do like to get out of the heat for part of the summer. I play golf in 105 degree weather, and much prefer that to 90 degrees with humidity. 115 degrees is brutal though, even with 8% humidity.
I have spent considerable time the last 4 months getting the right information to post again in reference to our relocation/retirement plan. Where is the best place to post our new numbers in order to get quality feedback? THANKS
The FIRE and Money forum is probably what you're looking for FIRE and Money - Early Retirement & Financial Independence Community
Of course
