Critique my British Budget!

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Aug 2nd 2020, 11:20 am

#61

durham_lad

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Re: Critique my British Budget!

Quote:

Originally Posted by Lion in Winter

I had no idea there was choice like this. Good to know. On reading the NHS site, I see there is a certain amount of choice in GP surgery, too, including choosing one that's a bit out of your area if they will accept you.

Where we live are 2 GP surgeries each with many doctors and both a half mile walk from our house so we chose the one recommended by our friends although I gather that the other one is just as good. We do know someone here who last year decided she didn't like the one she was with and switched over. No problem, just walk in and change your registration.

Aug 3rd 2020, 3:37 pm

#62

kateg60

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Re: Critique my British Budget!

Quote:

Originally Posted by durham_lad

Excellent. Some of our income comes from those sources as well. (We retired at age 55)

Since my wife has no pension income we moved nearly all our savings into her name and into “HMRC Reporting “ ETF funds so that most of our cap gains when selling fund shares are tax free and qualified dividends attract the tax free portion plus lower tax rate.

All of my IRA money is now converted to a Roth. We’ll complete the last of my wife’s Roth conversions next year jus before she starts drawing OAP and SS.

What is the purpose of converting, is there specific guidance you used to determine how to proceed with US pensions/retirement accounts?

Aug 3rd 2020, 3:59 pm

#63

durham_lad

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Re: Critique my British Budget!

Quote:

Originally Posted by kateg60

What is the purpose of converting, is there specific guidance you used to determine how to proceed with US pensions/retirement accounts?

withdrawals from IRAs for me as a U.K. resident would be taxed by HMRC, and at age 72 one has to start Required Minimum Distributions which, along with my private pension, SS and OAP would be taxed at 40%. Over a 9 year period after retiring at age 55, ending last year, I converted the IRA to my Roth as a lump sum each year and those conversions were only taxed by the IRS at a much lower rate. Roth distributions are tax free in both countries.

So before deciding if Roth conversions are right one must consider future tax scenarios, remembering also that a spouse will inherit after death so the survivor may end up in a higher tax bracket once they are widow’ed.

https://www.irs.gov/retirement-plans...-distributions