CRITICAL information Check this out!!!

Bennie Franklin · Dec 17, 2019

What will my retirement income be after taxes??? Confusing! Retirement income is taxed at different levels, soc. security not taxed up to a certain amount, TSP 401K withdrawals and so on. Stumbled on to this retirement tax calculator. My questions were : what will my tax rate be? how much will I keep? What will my spendable income look like etc. Wow this does it ALL! IRS & State Tax Calculator || 2005 -- 2020

Opinions?

Bennie Franklin · Dec 17, 2019

This is surprisingly accurate to calculate what my current (employed) spendable take home paychecks are! Accurate. So I feel confident this is a good indicator of what my retirement take home will be too! Very nice! Also, Sometimes we forget that there are no more soc. sec. deductions, no more 401k deductions, no more deductions for this and that. No more gas to go to work every day too.

RDruckus · Dec 22, 2019

Plan for a cushion, in case laws change.

Recently a change to ROTH disbursements was included in a bill making it's way to the President's desk.
I believe it was mainly about the military, but the ROTH thing was a little nugget.
I read about it here, but can't find it now. Sorry.

Altoonaflyer · Dec 22, 2019

RDruckus said:
Plan for a cushion, in case laws change.

Recently a change to ROTH disbursements was included in a bill making it's way to the President's desk.
I believe it was mainly about the military, but the ROTH thing was a little nugget.
I read about it here, but can't find it now. Sorry.

Actually, the Roth change proposed is to require those non spousal folks who inherit the account to withdraw it all within 10 years, not spread it out over their expected lifetime. Government wants that money back in circulation!

DB.Cooper · Dec 22, 2019

There are some sgnificant changes coming to IRAs and a few other things with retirement funding... heard something about it on the radio the other day.... haven't researched it tho....

Altoonaflyer · Dec 22, 2019

Changes to Inherited Accounts

Voglio-il mio · Dec 23, 2019

Altoonaflyer said:
Actually, the Roth change proposed is to require those non spousal folks who inherit the account to withdraw it all within 10 years, not spread it out over their expected lifetime. Government wants that money back in circulation!

I believe that it has to do with inherited IRA's, either Roth or conventional. I have one of these I'll have to check into it a little closer when I have time, Thanks for the heads up!

hockey94 · Dec 23, 2019

I would think the new law regarding IRA's etc would not have any bearing on something you inherited before this new law will take effect.

DB.Cooper · Dec 23, 2019

I just went to PostalEase and updated my TSP info for 2020.... I feel like I just spent the night at a Holiday Inn Express....

Voglio-il mio · Dec 24, 2019

hockey94 said:
I would think the new law regarding IRA's etc would not have any bearing on something you inherited before this new law will take effect.

That would be nice, but I'll have to check into it I think I'm about 5 years into the one I own?

Bennie Franklin · Jan 16, 2020

What has surprised me is the realization that an individual does not need to make the same salary in retirement to have the same standard of living. I will no longer have to pay into social security out of my "paycheck". No medicare deductions, NO 401K deductions! And I should be in a lower tax bracket meaning I keep more.

eomr · Jan 16, 2020

Starting this year you don't have to start pulling money out of Thrift Savings at 70 1/2. It was changed to 72 and there's a formula used to determine the minimum that you have to withdraw each year. I still have a few years to go before I have to worry about that so I can do some reading up on it.

Kubota Man · Mar 1, 2020

Bennie Franklin said:
What will my retirement income be after taxes??? Confusing! Retirement income is taxed at different levels, soc. security not taxed up to a certain amount, TSP 401K withdrawals and so on. Stumbled on to this retirement tax calculator. My questions were : what will my tax rate be? how much will I keep? What will my spendable income look like etc. Wow this does it ALL! IRS & State Tax Calculator || 2005 -- 2020

Opinions?

Bennie, this is great. Thank you for putting this up, it's a great help to us all.

Bennie Franklin · Apr 3, 2021

I thought it might be good to bump this thread back up to the top since so many are retiring. The calculator is updated for 2021. Even though I left mid last year this thing is so helpful for planning my first full calendar year of retirement. My wife is retiring too this year and I've been plugging in her numbers. Bought a nice camper. Hitting the ROAD!