Promptly notify the Social Security Administration of profits received when you sell stock.
https://www.ssa.gov/ssi/spotlights/spot-rights-responsibilities.htm
https://www.ssa.gov/ssi/spotlights/spot-rights-responsibilities.htm
My 80 year old neighbor got skinned on Medicare premiums for a year after a stock sale.I think the reduction in benefits due to other earnings is only for people who have not reached full retirement age. Full retirement age for someone born in 1957 is 66 years and 6 months old. Per the SSA, "Beginning with the month you reach full retirement age, your earnings no longer reduce your benefits, no matter how much you earn."
Also, SSA says "When we figure out how much to deduct from your benefits, we count only the wages you make from your job or your net profit if you're self-employed. We include bonuses, commissions, and vacation pay. We don't count pensions, annuities, investment income, interest, veterans benefits, or other government or military retirement benefits."
So, looks like only earned income is counted to determine any reductions. But someone who is 67 years old should not see a reduction due to having reached full retirement age already.
Yes. I am not at all up on the SS rules.At 70 we are unlimited on what we can make and not effect the SS. Does that help you.
I get a letter each January telling me what im allowed to make that year. In 2024 it was almost 60,000. In 2023 it was less than 20,000. I had to defer some pay for a few months in 2023. Not working much now so thats not a problem.I think the reduction in benefits due to other earnings is only for people who have not reached full retirement age. Full retirement age for someone born in 1957 is 66 years and 6 months old. Per the SSA, "Beginning with the month you reach full retirement age, your earnings no longer reduce your benefits, no matter how much you earn."
Also, SSA says "When we figure out how much to deduct from your benefits, we count only the wages you make from your job or your net profit if you're self-employed. We include bonuses, commissions, and vacation pay. We don't count pensions, annuities, investment income, interest, veterans benefits, or other government or military retirement benefits."
So, looks like only earned income is counted to determine any reductions. But someone who is 67 years old should not see a reduction due to having reached full retirement age already.
I have done some research on that recently. I am moving money from my 401k to a Roth IRA since money in the Roth grows tax free and there are no RMD's from a Roth. Of course, any money taken out of the 401k adds to your taxable income in the year of the transfer/conversion. Since the 401k was opened in the early 80's, there is a good bit of money there. How much to convert each year gets into tax brackets, tax rates and also the medicare premium increase.My 80 year old neighbor got skinned on Medicare premiums for a year after a stock sale.
His monthly premiums went from 170 to over 500 a month for a year.
I don't know where that income bracket is .
In the grand scheme that might be pennies.
Thats correct, the proposed merger was with Albertsons.Wasn't Kroger involved with that merger that was denied? That sounds like a lot of eggs in one basket.
Sell the stock and spend all the money on cows. That will fix your income problem and make a bunch more work for you! Win-winIt really sucks when an older person that has worked for 50 years and still wants to work some has to watch what they make to keep from being penalized.
Livestock are depreciated over a period of years. That is not a clear fix.Sell the stock and spend all the money on cows. That will fix your income problem and make a bunch more work for you! Win-win
KennyIt really sucks when an older person that has worked for 50 years and still wants to work some has to watch what they make to keep from being penalized.
Thank you. I do some self employment work on hurricane response and yes it cuts a lot.Kenny
Any stocks you sell will be taxed at long term capital gains which comes from a different tax chart and none of it counts against your SS. Make sure your broker knows it is being split 3 ways and perhaps he will report it as such to each of you. Otherwise you are considered the nominee and you have to file as it is reported to you and then issue the other two a 1099 for their share from you and file that with the irs. An accountant can help you with that. ALSO remember the cost basis of those stocks is not when he purchased them but the DAY OF HIS DEATH
he only thing that goes into the calculation for SS being taxable is EARNED income which consists of w-2 wages and /or 1099 wages for self employed or if someone pays you that way with no taxes withheld. Worst way to get paid because you wind up paying your side and employers side of taxes.
Correct. And if you don't sell and hold onto the stocks for some time, then the cost basis changes to the original purchase price.the cost basis of those stocks is not when he purchased them but the DAY OF HIS DEATH
Moses388Correct. And if you don't sell and hold onto the stocks for some time, then the cost basis changes to the original purchase price.
Please do.Moses388
That I am not sure of . I will check and get back to you.
Not true. The basis will never revert to the original purchase price.Correct. And if you don't sell and hold onto the stocks for some time, then the cost basis changes to the original purchase price.
I will askcouldn't you all open an account with the same brokerage and then have the stocks split up into each account. That way if one of you don't want to sell your share of the stock you don't have to.
That is what was done with my grandparents stock account. If I remember it work fairly well.