Yes, my son has that option at work but he does not have the Mega Backdoor option so he is limited to the $22,500 limit. Contributing to a non-deductible IRA and then converting to Roth will allow him to contribute another $6500 to Roth. 50 years of tax-free growth should leave him with a nice sum.
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Thanks. I really need to investigate. When Iâve looked before, I have concluded it didnât make sense, but I will look again.
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If you donât have tax consequences because of other pre-tax IRAs, I canât think of any possible reason that it wouldnât make sense (some situations people arenât allowed to do the mega backdoor Roth, however, but anyone can do the backdoor Roth). Money invested with zero taxes on gains is always the best investment.
Sounds like you would keep your primary residence where it is. New Orleans has a lot to offer certainly.
We have good friends that live part year/almost most of the year now in Gulf Shores - they have excellent views from their living/great room area and their master bedroom. They still maintain their main residence in N AL - it keeps their residency and tax work up easier. At some point they will give up their N AL home, but her husband still consults with N AL employer. It definitely takes âworkâ to âdownsizeâ from 2 places to one, and health issues have come into play for them now as well.
I have no objections to having life where we are. DH says I can have long stays in TX to help with the grandkids when the time comes.
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New Orleans is a great place to snowbird or be an empty nester. Lots of fun things to do everywhere, especially this time of year. My wife and I have a hard time picking which things to do each weekend, or which new restaurants to go to. But yes, it is not cheap unless you are comparing it to major cities on the West Coast or Northeast.
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I have a HSA question.
We have a high deductible plan. My husband retired last year and we had a nice amount in the HSA so we didnât contribute last year and havenât this year.
One reason being that our medical expenses are very low. Because my husband is on a biologic medication that is very expensive and because the drug co pay assistance was paying our deductible.
The gig is up. Our insurance has decided that a co pay assistance will no longer count to cover our deductible and that only money we pay out of our pocket personally will count.
My question. My husband is 63. Iâm think I should move money to the HSA this year and next? Our HSA is through Fidelity which also is home to our IRA. Is there any downside to doing this? I think I can transfer money from one account to the other. Then I would save the taxes on our medical expenses for this year and next. After which we wonât be able to contribute?
Thanks for any advice.
We receive $1500 from the company for the HSA when we pick the HDP. We will receive $5000 per year for Medicare expenses once my husband goes on Medicare. In 2.5 years.
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You cannot move money from the IRA to the HSA w/o creating a taxable event.
You can definitely transfer from one account at Fidelity to the HSA, but it cannot be IRA money.
I fund the HSA every year even though I am not using the money in order to realize the tax break & enjoy tax-free growth on the funds.
One thing to consider is whether or not you want to use the HSA funds to pay for your Hâs copays. Depending on how high your OOP health care expenses are, you may want to itemize amounts over 7.5% of your AGI and leave the money in the HSA to grow tax-free, assuming you can cash flow the expense.
If you itemize, you cannot withdraw HSA funds against the itemized expense in the future. Alternatively, if you do not itemize and just pay expenses OOP this year, you can withdraw the money at a later date, allowing it to grow tax-free in the meantime.
Hopefully that makes sense.
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Thanks. Very helpful.
Deductible will be $7000. Donât think we can itemize, as income will be higher.
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I hope my insurance doesnât change that for me. I was so surprised they have allowed it.
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Us also.
The good news is that we have had this benefit until now. Husband is 63 and will transition to Medicare soon. Itâs only 2 years.
I donât really understand why insurance cares who pays the deductible. They get their money one way or another.
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Copay accumulator plans have been banned in 19 states and there seems to be an effort in more states to ban these.
The Federal Circuit Court in DC overturned the regulation allowing these back in September. Not sure who is covered by that:
How does the insurance company even know? I use one of these assistance programs and insurance is not involved at all as far as I can tell.
You might want to evaluate whether a plan with lower deductibles and copays either make more sense than an HSA-eligible plan
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Hi, not sure if this is really the right thread but I canât remember where Iâve seen it discussed before. During sonâs recent visit, we discussed his concerns about having to âtake overâ if something happens to us. Some time back, there were recommendations on CC for booklets/check lists or such that included all information like who to notify, financial accounts, ongoing bills, where to find passwords, regular service people, irregular service people, etc. Son would be lost as to where to even start.
Has anyone used such info tools and, if so, which ones?
I walked him through our trust/will/POA and such paperwork (he has a CD copy somewhere). In the process, we discovered our trust attorney firm has closed down and one of the partners started his own business. He now has our account which was established in 2016 (our will had previously been done in another state when son was a minor). Sometime in the next year or so, I think husband, son, and I should all sit down with the attorney and review and discuss everything.
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Would have been nice for the company to inform us of this new policy before we had to do our plan elections in October.
It will definitely be looked into next year.
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We updated my momâs will and trust last year.
It had been done in another state when my dad was still alive.
So happy we consulted with an elder attorney because the old will was a complete mess.
Changed her medical and financial POAâs.
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We redid ours when we moved from Illinois to California. Previously we just had a regular will. This time we met with an estate specialist and set up a trust and all POAâs and more. Our experience with settling MILâs estate a few years back and then my momâs during the year after we moved gave me a much better picture of what we should set up for sonâs sake.
But heâs concerned with everything he would need to handle so the more details we can have available, the better. Including such things as who to call to trim the palm tree, what if the sprinkler system goes out, who is the pool guy, and more! So one central document we can note everything would be great.
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Honestly, I just started my âWhat to do if I dieâ document when my kids were little, and I realized my H would have no clue what to do about most things. Over the years, I add to/modify it as I think about things. Who to call for repairs is actually a good one! I might add that⊠But right now my headings are
- last updated (I actually update every month now)
- Where the word document is located. Itâs password protected, so I have the clue to the password (that everyone knows)
- Everyoneâs SSNs, Drivers License #
- Checking accounts - name, #, balance
- Savings accounts - ditto (also safety deposit box info)
- Health Savings Info
- Retirement Accounts
- Life Insurance Policies
Page/Chart that shows
- Automatic Monthly Bill - that comes out of checking
- Automatic Credit Card Monthly charges
- Monthly Bills that are NOT automatic
- Automatic non-monthly bills
- Non-monthly Bills that are NOT automatic
Page that shows what is automatically withdrawn from our paychecks (premiums, etc.)
Page that show where all hard copies of files are located
Page(s) of important accountsâ user name/Passwords/security question
I now also have in big bold RED letters at the very top, if I should die first, to MAKE SURE H keeps health insurance. The premiums are through my employer. If I died, it would not occur to him that he will lose it unless he makes other arrangements. My kids have been instructed to help him, because he just wouldnât think of any of this.
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Just updated mine recently. Google âwhat my family should knowâ will bring up a number of results. I went with the free word document download, and modified from there. I added sections that were specific to me, and ignored/left sections that I might need in the future.
A starting pointâŠ
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Vanguard in the past had a multiple page (20) document that covered much of what you are looking for called â my personal inventoryâ. Just checked and the bookmarked
page no longer works.
https://personal1.vanguard.com/pdf/paspri.pdf
I tried to access through the homepage and no luck.
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I found what looks like that document. Much of that information is in the giant binder from the
estate attorney. But unfortunately doesnât include the everyday stuff for taking care of a house.
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