|
Q. My husband is retired. We are thinking of moving to Maui and working part time. We had
heard there are some laws regarding retirement from another state and living and working in
Hawaii. What are the laws? We need your help.
A. I am currently waiting for an answer from the Hawaiian government. I did learn that
if your pension was fully funded by your employer, then it is not taxed in Hawaii. If it was a combination
of emplyer and you funding it, then just your portion is taxable. Also, all City State and Federal
retirement are non-taxable, plus private retirements are also non-taxable is all the money
was put in by the employer. Watch this
page for more information.
Q. I am currently drawing Social Security since age 62. I will turn 65 in March
of this year, 2003. I am under the impression that from March onward there is no
limit t the amount of earned income I can have without penalty to my monthly Social
Security check. Is this true?
A. According to the Social Security Administration here is no limit on earnings
beginning the month an individual attains full retirement age. To see when you reach
retirement age, please see the following
chart. According to this chart, a person who turns 65 in 2003, was born in 1938 and
will reach retirement age at 65 and 2 months.
Q. I recently left my last employer and would like to roll over my 401K into an IRA. I
understand the benefits of the IRA but I don't know where to find a financial institute/trustee
that offers one. Can you please give me information related to finding an IRA and the
administrative fees that accompany one.
A. There are several places where you can rollover your 401k into an IRA. Your bank, or
an investment firm such as Wachovia, Edward Jones, Schwab, to name a few. The fees
associated with an IRA will vary and some might be waived. An example of one
investment firms fees can be found
here.
You can check out most investment firms online. This article from Smart Money explains
rollovers very well. The investment firms listed here are examples only and
not an endorsement of these firms.
Q. I will be 70 1/2 this year and want to know how I can know what amount I will be
required to take for the yearly distribution of my IRA. Where can I find this info?
A. Your financial institution that holds your IRA usually will provide this information to you
but you can calculate this amount with this
Minimum Distribution Calculator.
Q. What is a traditional IRA?
A. An IRA is a personal retirement fund that an individual can establish
by making contributions each year. These contributions are usually tax
decustible the year of the contribution and is subject to tax the year it
is withdrawn. Currently, an individual can contribute up to $2000 per year
into an IRA. Withdrawals can begin at age 59 1/2.
Q. What is a Roth IRA?
A. A Roth IRA is a personal retirement fund that an individual can establish
by making contributions each year. Contributions are non-tax deductible
and currently can be up to $2000 per year. The money contributed to a Roth IRA is taxed in the year the
contribution is made and is withdrawn tax-free after the individual reaches
age 59 1/2.
Q. What age can a person born in the latter half of the year 1939 begin to
draw full social security benefits? To see the full benefits and reductions
chart from the Social Security Administration, go to the
Benefits and Reductions Chart.
A. Your full retirement age is 65 years and 4 months.
Q. How early should I begin to plan for my retirement? I am 23 years old
and have just started my family.
A. You should begin to plan for your retirement immediately. There are several
things you can do right now to be sure you will have the necessary income to finance
your retirement when you are ready. Read over the resources on this web site for
information on retirement planning and how you should start.
Q. Where can I learn more about annuities?
A. There is a very good tutorial at Annuities 101.
You can also look over the links under Annuities for some excellent
information and links.
|
