I plan on leaving this world the same way that I entered it - bald, wrinkled, toothless, screaming, and broke. Is there anything you can do in the way of financial planning for me, Rob?

 

Rob, alimony? You sure?

 

How long does the marriage have to be in effect in order to qualify for "piggybacking" a spouse? I'm betting that it's too late for Martha and I to take advantage of it this year.

 

Dean,

I am not an expert by any means so check with your financial planner. But it sounds like you are looking for a reverse mortgage. If you time the spending of your money so that you spend the last penny as you take your last breath you are the winner.

Again check with your financial planner to see if this is right for you.

 

Having just put my father-in-law to "rest", I'd say that if you don't want to burden the survivers with your funeral costs, you better set aside enough money to cover the costs before you spend that last penny. But I agree, he who plans to spend every last penny, including the cost of his own funeral, is the winner.

 

Thanks folks. Martha is my financial planner, but she's in Houston all this week on business.
My funeral arrangements have already been made through the Neptune Society for burial at sea. It was either that or a "Hefty" bag and a midnight run to a McDonald's dumpster.

 

Yes.

Section 2168 "Individuals who receive compensation, including alimony, that is includible in gross income and who are not age 70 1/2 or older during the tax year may make contributions to traditional individual retirement accounts."

"The term "compensation" includes earned income as well as alimony. The term does not include pensions, annuities of other forms of deferred compensation."


From the US Master Tax Guide 2004

 

I'll look it up in a few minutes, but I think at any time during the year. I think you and Martha could do this. I'll let you know in a little while.

Of course you and Martha might not be elligible if your AGI exceeds the limit or if she is covered by a pension at work and your AGI exceeds certain limits.

I'll let you know later.

 

Off topic:

I like the way you think when it comes to funerals. No fuss, no muss!

 

Traditional IRAs

The income limit for a person, married filing jointly, and covered by a pension plan at work is $70,000 with the phase out beginning at $60,000. The spouse who is not covered by a pension plan, can contribute to a traditional IRA as long as the AGI is below $150,000.

Roth IRAs

The limit for making a contribution to a Roth is $110,000 with the phaseout beginning at $95,000 and for married filing jointly $160,000 with the phaseout beginning at $150,000.


I have not found any wording relating directly to the marriage period and how it effects the IRA, but, in general if a couple gets married at any time during the year and is married on the last day of the year, the couple is deemed to be married for the full year. I would think that would be the case with an IRA. If Dean and Martha got married during the year, and were still married on the last day of the year, they were deemed to be married for the entire year for the sake of an IRA.