Z3Dreamer
Thinks s/he gets paid by the post
Gaming the system is important. Some jurisdictions grant relief from property tax if your income is below a certain amount and your assets are below some amount. I remember 20 years ago the income limit was about $25,000 and the assets were $75,000. All income was included. Assets not included: house, two cars, future pension, IRA, 401k. Lets say that in 20 years that limit has doubled. If you put that $1M in an annuity and draw out a minimal amount, you may qualify. As I said, gaming the system is important.
Income limit is now $52,000 and asset limit, excluding house, is $340,000 but they now include 401k and cash value of annuity as assets. If you have a 401k of $350,000 that could throw off $15,000 a year you would not qualify, but if have a pension that throws off $45,000 you would qualify. So positioning assets in your net worth does have merit, in certain cases.
Income limit is now $52,000 and asset limit, excluding house, is $340,000 but they now include 401k and cash value of annuity as assets. If you have a 401k of $350,000 that could throw off $15,000 a year you would not qualify, but if have a pension that throws off $45,000 you would qualify. So positioning assets in your net worth does have merit, in certain cases.
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