Retirement planning guides

These guides explain the retirement topics RetirementNeuron models. Each one starts with a direct answer, then the assumptions and the limits of the software.

• How retirement planning works

  Retirement planning is the process of comparing when you stop working, how much you spend, where income comes from, and how taxes, Social Security, and Medicare change the result.

• Social Security retirement planning

  Social Security retirement benefits can be claimed as early as 62. Waiting past full retirement age increases the monthly benefit until age 70. The right age depends on the household, not a single rule.

• Roth conversion planning in retirement

  A Roth conversion moves money from a traditional IRA or similar pretax account into a Roth IRA. The converted amount is generally taxed as ordinary income in the year of the conversion.

• Medicare and IRMAA planning

  Most people become eligible for Medicare at 65. Higher-income households may pay an income-related monthly adjustment amount (IRMAA) on Medicare Part B and Part D. IRMAA generally looks back two years at modified adjusted gross income.

• Retirement tax planning

  Money from traditional retirement accounts is generally taxed when it is withdrawn or converted. Qualified Roth withdrawals are generally not taxed again. The mix of those withdrawals changes taxable income each year.

• Household retirement planning

  A household plan tracks more than one person. Retirement dates, Social Security claim dates, and Medicare dates can all differ, and survivor income can replace two benefits with one.