Projecting taxes in retirement

[MI-Roger]

Is there a text book to assist with completing the iORP spreadsheet? Hovering the mouse over the highlighted text assists with a few options but many others are still baffling.

Tontine?

At first I wondered why the Canadian dish of french fries covered with cheese curds and gravy would be part of retirement planning? Other than the artery clogging and life shortening concept. Then I googled the name, found its actual definition, and once again wondered why it would be considered common enough to include in a retirement calculator.

[SevenUp]

Quote:

Originally Posted by MI-Roger What tools or techniques did others use to predict tax implications in retirement?

There is a spreadsheet hosted on the MMM forum (see Case Study Spreadsheet updates) that will show a graph of tax rates vs. the income or contribution type of your choice.

The chart below is for $40K of W-2 income and $2K of qualified dividends, for MFJ both age 62.

[RetireBy90]

Quote:

Originally Posted by Gotadimple 5. What will your retiree health plans cover after age 65? How does that cost compare to the cost of Medicare Part B? Part B + Medicare Supplement/Medicare Advantage Plan 6. What is the IRMAA limit for you as respects your Medicare Part B premium? - Rita

IRMAA is pretty straight forward, for Married filing jointly it is based on your MAGI from federal taxes. Expressed below is extracted from a SSA letter after enrolling DW about 2 months ago. IRMAA is a monthly figure.

MAGI - PART B IRMAA - Part D IRMAA
Less than $170K - 0 - 0
$170K to 214K- $53.50 - $13.00
$214K to $267K - $133.90 - $33.60
$267K to $320K - $214.30 - $54.20
Over $320K - $294.00 - $74.80

Another poster can address the Modified part of Adjusted Gross Income. SSA referred to numbers on line 37 of my 1040, bottom of first page before any deductions.

[MI-Roger]

After using the base model and reading all the parameters used in performing the calculations, and the default values of these variables, the data entry sheet for the extended version makes more sense.

In summary, we look to be in good shape.

Per the base model our initial retirement spending in 2 years time can be approximately 140% of our existing pre-retirement Net Income, then increase further with each successive year till reaching our assumed life expectancy of 92+.

My wife and I were just discussing how Retirement no longer seems to be a reward for a career well served, but has become another angst ridden and unavoidable complex decision with no 'do-overs' available.

Pensions are gone, retirees now have to plan and fund their own regular income. Post-retirement health care is gone, retirees now have to plan and fund for their own health care needs. Social Security is threatened on a different front every day in Washington. Families are often widely scattered making family support or assistance with decisions a rarity. More and more information is only available on-line - provided you even know where to look!

Instead of being a reward, retirement has become a person's final career.

[pb4uski]

^^^^ Well, retirement is still better than the alternatives.... working or pushing up daisies.

[Dtail]

Quote:

Originally Posted by MI-Roger After using the base model and reading all the parameters used in performing the calculations, and the default values of these variables, the data entry sheet for the extended version makes more sense. In summary, we look to be in good shape. Per the base model our initial retirement spending in 2 years time can be approximately 140% of our existing pre-retirement Net Income, then increase further with each successive year till reaching our assumed life expectancy of 92+. My wife and I were just discussing how Retirement no longer seems to be a reward for a career well served, but has become another angst ridden and unavoidable complex decision with no 'do-overs' available. Pensions are gone, retirees now have to plan and fund their own regular income. Post-retirement health care is gone, retirees now have to plan and fund for their own health care needs. Social Security is threatened on a different front every day in Washington. Families are often widely scattered making family support or assistance with decisions a rarity. More and more information is only available on-line - provided you even know where to look! Instead of being a reward, retirement has become a person's final career.

Yes but it's Monday and just woke up from a 1 hour nap. Beats work any day.