Wife’s retirement timing is of little consequence
DEAR BRUCE: >> My wife is set to retire at the end of the year. She has several retirement investments in different accounts. She is also over the age of 69 ½.
Is it beneficial for her to work one week into 2017 rather than retire at the end of 2016? Would this allow us more time to set up required distributions? Immediate money is not an issue. -- D.C. DEAR D.C.: >> I don’t think it’s going to make a big difference except you may have a few weeks more to make a decision. Frankly, I don’t see what that’s going to do for you. Make the decision if she wants to retire now and let her go about it, or if she wants to hang out another couple of months, that’s fine, too. DEAR BRUCE: >> I recently left my job and received a large severance payment of $140,000. I was without another job for only one month and started a new job with an annual salary of $250,000. I am trying to avoid the IRS hit on all the income this year. Do you have any suggestions for what I can do to lower the amount of income tax I will have to pay? -- D.M. DEAR D.M.: >> All I can tell you is that many people would love to have your problem -- $140,000 in the bag and a $250,000 salary. I don’t know any way to avoid income tax on this money. If another reader has an idea, I would love to know, but I am afraid it’s a problem that will not make many people feel sorry for you. I do wish you well. Send questions to bruce@ brucewilliams.com. Questions of general interest will be answered in future columns. Owing to the volume of mail, personal replies cannot be provided.The Bruce Williams Radio Show can now be heard 24/7 via iTunes and at www.taeradio.com. It is also available at www. brucewilliams.com.