Random Nuggets I’ve Learned From the Internet
One of the benefits of scanning the internet for content is that, even after nearly 28 years in the business, I still learn an amazing amount of new things about retirement. So, I thought it might be prudent to start a new feature in Top of Mind to share this wisdom with you - we’ll call it “Random Nuggets I’ve Learned From the Internet,” for now (but feel free to suggest a better name!).
Here are some of the things that I recently learned:
- Yet another advantage of pre-tax 401(k)/403(b)/457(b) deferrals is reducing your taxable income for purposes of an income-driven student loan repayment program, thus lowering your student loan payment. Although interest will still accrue on the loan, if you are enrolled in a public service loan forgiveness program, lowering your monthly payment is a win-win.
- A disadvantage of Health Savings Accounts (HSAs) is that if an HSA account holder dies, and the account balance goes to a non-spouse beneficiary, the IRS considers that money to be taxable income in the year in which it is received. Yikes! Far from a deal-breaker for HSAs, but certainly something to keep in mind if a participant is unable to name a spouse as the beneficiary.
- The term “widex” refers to the “widow/er” of an ex-spouse! Why is this term important for retirement purposes? Because, under certain circumstances, “widexes” might be entitled to Social Security survivor benefits with respect to their deceased ex-spouses.
- My home state of New Jersey is the only state in the nation that taxes both 403(b) and HSA contributions. I knew about the 403(b) taxation, but the HSA one was a surprise!
- If the SECURE Act becomes law, it does NOT mean that the Stretch IRA is completely dead.
Note: This feature is to provide general information only, does not constitute legal advice, and cannot be used or substituted for legal or tax advice. Opinions expressed are those of the author, and do not necessarily represent the opinions of Cammack Retirement Group.
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