Thank you for all the replies. I will be replying to each and every one of them. You've all provided many things to think about and some I haven't even heard about it.
We live in a high cost of living area. Where an 800 sq ft shack on 5000 sq ft land can be almost 1m. So if he could make a little to move up, it would be nice.
Another point I saw was to take out RMDs to max out his tax bracket. Thing is, how much more RMDs can you take out before Social Security realizes it and pays you less. I don't even know what his tax bracket is.
Here' a website for 2025 tax brackets and standard deduction: https://taxfoundation.org/data/all/fede ... -brackets/
A single senior has another $2,000 deduction to use. At $100K the adjusted gross income would be $100,000 - standard deduction (or itemized deduction if it is more) - $2,000 = adjusted gross income. Where it falls in the tables is the tax bracket. The difference between the top of the tax bracket and where your dad is is the headroom he has to max out his tax bracket.
If your dad has a taxable account with long term capital gains there's different tables about that: https://www.kiplinger.com/taxes/new-irs ... thresholds. Long term capital gains ride on top of income so it may be more beneficial using them at times.
Both of these could possibly trigger IRMMA if he's not already triggering it. If he is you do want to pay attention to not jump into the next bracket. https://www.kiplinger.com/retirement/me ... ts-b-and-d
There's a lot to know and learn. I had no clue a year ago how much there was to know!
Statistics: Posted by Vinny_in_NJ — Wed Jan 22, 2025 6:21 pm
