"Taxed and Spent" wrote in message news
On 7/26/2017 12:58 AM, Ophelia wrote:
> "Taxed and Spent" wrote in message news >
> On 7/25/2017 7:35 PM, John Kuthe wrote:
>> On Tuesday, July 25, 2017 at 6:57:13 PM UTC-5, Alex wrote:
>>> Taxed and Spent wrote:
>>>> On 7/24/2017 5:25 PM, Alex wrote:
>>>>> Taxed and Spent wrote:
>>>>>> On 7/22/2017 7:07 PM, Alex wrote:
>>>>>>> Taxed and Spent wrote:
>>>>>>>> On 7/21/2017 6:57 PM, Alex wrote:
>>>>>>>>> Taxed and Spent wrote:
>>>>>>>>>> On 7/21/2017 9:30 AM, Dave Smith wrote:
>>>>>>>>>>> On 2017-07-20 8:03 PM, Taxed and Spent wrote:
>>>>>>>>>>>> On 7/20/2017 4:13 PM, Alex wrote:
>>>>>>>>>>>
>>>>>>>>>>>>> You should move some, or all, to a Roth IRA so you can
>>>>>>>>>>>>> collect the
>>>>>>>>>>>>> money
>>>>>>>>>>>>> tax-free at retirement time.
>>>>>>>>>>>>>
>>>>>>>>>>>>
>>>>>>>>>>>>
>>>>>>>>>>>> Doesn't that require the payment of a bunch of taxes NOW? It
>>>>>>>>>>>> may
>>>>>>>>>>>> not
>>>>>>>>>>>> make sense.
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>> I make no claim to knowing who retirement plans work in the US
>>>>>>>>>>> but up
>>>>>>>>>>> here a common vehicle is the Registered Retirement Savings Plan
>>>>>>>>>>> (RRSP).
>>>>>>>>>>> You can sock money away into them and each year you can deduct
>>>>>>>>>>> that
>>>>>>>>>>> amount from your taxable income... to a limit. It is a tax
>>>>>>>>>>> deferral
>>>>>>>>>>> system. You have to pay income tax on it when you draw it out. I
>>>>>>>>>>> guess
>>>>>>>>>>> the idea is that you sock that money away during good years,
>>>>>>>>>>> the big
>>>>>>>>>>> income days when you would be paying the higher tax rates. Then
>>>>>>>>>>> you
>>>>>>>>>>> start cashing them in after retirement when your income is
>>>>>>>>>>> likely
>>>>>>>>>>> to be
>>>>>>>>>>> about half what it was when working. You then pay the income
>>>>>>>>>>> tax
>>>>>>>>>>> at a
>>>>>>>>>>> lower rate. Some people try to make do on their pensions and
>>>>>>>>>>> leave
>>>>>>>>>>> the
>>>>>>>>>>> money in RRSPs until they have to take them out or convert them
>>>>>>>>>>> another
>>>>>>>>>>> vehicle. Pity the heirs to estates of people who have lots of
>>>>>>>>>>> money
>>>>>>>>>>> tucked away in deferral plans and then die early so that they
>>>>>>>>>>> are
>>>>>>>>>>> all
>>>>>>>>>>> cashed in the same year and pay even higher tax rates.
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>> In the US, heirs can receive payouts over a number of years. With
>>>>>>>>>> complex rules to determine the number of years, of course.
>>>>>>>>>>
>>>>>>>>>
>>>>>>>>> That would depend on the language of the trust. Some have no
>>>>>>>>> timeline.
>>>>>>>>> What you are referring to is often the case for children so they
>>>>>>>>> don't
>>>>>>>>> blow it all at once.
>>>>>>>>>
>>>>>>>>
>>>>>>>> I was referring to inherited retirement accounts.
>>>>>>>
>>>>>>> So was I. Depends on the language in the trust.
>>>>>>>
>>>>>>
>>>>>> no it doesn't.
>>>>>
>>>>> Maybe you are thinking of a required minimum distribution. That
>>>>> doesn't
>>>>> limit what you can cash out, it tells you how much you have to cash
>>>>> out:
>>>>>
>>>>> https://investor.vanguard.com/inherit/ira-rmd?lang=en
>>>>>
>>>>
>>>> yes, RMD. And that has nothing to do with trust language.
>>>
>>> A trust can limit the access to anything in it. Many are set up so the
>>> beneficiaries are unable to liquidate it all at once.
>>
>> Not in my case! I want all my housemates to know that in an emergency
>> they
>> CAN leave on short notice,. I'd prefer sooner notification but sometimes
>> that's not possible.
>>
>> Remember this is primarily but not limited to students!
>>
>> John Kuthe...
>>
>
>
> OK, time for the nice fellows in the white coats to pay this guy a visit.
>
> ==
>
> Why? He isn't a student and he lives there.
>
>
>
>


He is including his student tenants in his estate planning?

==

I don't know, I just thought I had seen someone saying he only had students.



--
http://www.helpforheroes.org.uk