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URL:  http://boards.fool.com/ltltjust-keep-in-mind-that-deferring-income-21458421.aspx

Subject:  Re: 8 years till ER Date:  10/17/2004  10:46 AM
Author:  hjg0989 Number:  2710 of 5076

<<Just keep in mind that deferring income can create problems eventually. Half of Social Security income is subject to income taxes, and after age 70.5 you must begin redeeming IRAs and 401Ks. If you redeem savings bonds that have a lot of taxable income to those facts, you might wind up paying more in taxes.>>

This is when I start to feel like Linda Blair in "The Exorcist", with my head spinning around ...

There are so many unknowns like future income tax, social security tax, captial gains tax. Then there is the gay marrigage debate (at this point I could go off on a tangent when I think about how my partner or I could have to pay estate taxes when one of us dies on money we've aquired through a lifetime together - not to mention all the other issues like lack of survior benefits ....). It makes planning very difficult.

Here's another question, since my salary is higher than my partners, should we list her name first on the joint brokerage account so that we get taxed at her rate of income instead of mine ? I'm really hoping I am not creating a tax nightmare when we go to withdrawl our savings. I
I think I'd better get in and talk to our CPA.

Sorry for rambling. This stuff seems overwhelming at times.

-helen


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