Wife’s re­tire­ment tim­ing is of lit­tle con­se­quence

Daily Local News (West Chester, PA) - - MARKETPLACE - By Bruce Wil­liams

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.

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