How To Model Work During Retirement?
I tried to search for this in the Forum or one of the Case Studies but couldn't find. I am probably not the first to ask, so apologies for covering this one more time.
How do I model working part time after retirement?
It doesn't seem as simple as adding earning past my retirement date as the UI forbids that option.
If I add earnings a special (ordinary taxable) receipt, how does ESPP know about possible Social Security taxes and such?
What is the recommended method of properly accounting for part time work after retirement?
John
RSS
I believe you just move your retirement date ahead a few years. Retirement here means that you have no more earnings. But if that creates some conflict I've not thought of, it would seem you can just give yourself "taxable receipts" in the Special Receipts folder. Problem with that is that it doesn't take out SS that way does it? The answer to your question has to do with how taxes are handled. Larry or Dick probably know the answer. --Dan
Nope, Dan's right. Move your retirement date up until you stop working as long as you've got SS earnings. If you don't have SS earnings, you can pull the Special Receipts hack.
Best,
Dick Munroe
What does the retirement date affect in the calculations? Why does ESP need a retirement date to be entered at all?
It acts as a fencepost during a variety of SS calculations. Starting with the retirement date there are no more earnings.
Best,
Dick Munroe
If I plan to end my employment at age 58, but to delay drawing SS until age 69, and I have no labor income during that time, does it matter when I claim retirement from ESP perspective? I'm thinking of exploring moving money from an IRA to a Roth IRA in multiple conversions during this period, and I think ESP won't let me contribute to a Roth after I've "retired".
I don't think retirement date matters, but yes, the contributions can't be made after you've retired.
Best,
Dick Munroe