You've got more than money.

You've got Gene Dickerson in a brand new season here on PBS.

Happy to be with you.

Happy to be back.

It's kind of like first day of school.

All kinds of stuff going on.

It's fantastic.

Hopefully you'll enjoy not just the information that you pick up this evening, but the the energy, the excitement, because we can sure feel it here as we return for another full season of more than money.

Another full season means, gosh, in their first seven.

I think collectively over 250 shows put together for your benefit at your service.

Gosh, as I started in TV many years ago, we're now well over 3000 shows.

It's a pretty amazing thing to look back on.

Hopefully you've been part of many of those.

Hopefully you've picked up some ideas along the way that have been very beneficial to you.

I do know that goodness, when I started, folks who were just in the midst of their career are now retiring.

Folks who had children now have grandchildren.

Folks who have grandchildren have great grandchildren.

We are truly a generational impact here on more than money.

And gosh gives me such.

It's such an honor.

It truly is such an honor to serve you in any way that we are able.

If you're a loyal viewer of more than money, then you know exactly how this works.

Momentarily will give you answers to questions that you've submitted that you have found most important to you.

As you have kind of embraced our commitment to to serving you.

You send us your emails.

Gene at works very, very well Jenny at ask.

Com ask MTM.

Works very very well.

We answer as many of those on air as we can.

We don't get to nearly all of them.

That's not even remotely possible with a limited amount of time that we have on air.

But we do answer every question back to you.

Every single question gets answered back to you through our tremendous team, our more than money advisors, and our and team that surrounds them.

We answer every question back to you so that you have the information that you need that hopefully will make your path financial path a little smoother.

Hopefully.

And we select some of those for future shows and hopefully to benefit as many folks as we as we possibly can.

It's one of the reasons why we claim to be the most relevant financial show on television today.

No matter where you may be watching, no matter what station, no matter what.

Geography.

We claim we boldly claim to be the most relevant because you set the agenda.

We are certainly the most relevant for every single one of you.

That sends us your questions and goodness.

By sharing your questions with us, you share information with folks coast to coast, border to border, wherever they can find our show, our website, PBS, and passport.

They're all available to you.

So for the next question, not quite half an hour.

If you find yourself informed, that's fantastic.

Serve.

That's even better if you find yourself being even mildly entertained.

My apologies for sure.

Our normal co-host, Megan is on assignment this evening, so I will be doing double duty.

I will be co-hosting and hosting.

Schizophrenia runs rampant here, apparently.

So let's get right to the questions that you have sent us.

It's about more than money.

That's often true.

I'm facing an ethical dilemma.

I would value your perspective.

My mother was married to her late husband for nearly 37 years.

They were married late in life.

He was 54.

She was 48, and they largely kept their finances separate.

In 2015, they created a revocable trust.

The home that they lived and purchased was the only asset.

The trust states that the surviving spouse becomes the trustee and has the right to amend the trust.

Upon the death of both spouses, the beneficiaries would be the couple's five children.

My mother's three.

Her husband's two.

Several years ago, we received a copy of the trust.

My stepsister raised concerns with her father that if one spouse outlived the other, their surviving spouse could change the trust.

Her father declined to make any changes at that point and did not offer any assurances, and sadly passed away about a year later.

My mother hired an attorney to revise the trust, remove her late husband's children have beneficiaries.

In her view, they had inherited substantially from their father should not also inherit from her.

While I understand that as the surviving spouse as her right, I struggle with the implications.

I have always been close with my mother.

I also have a very cordial relationship with my stepfather's children.

While I do not question my mother's intentions, I worry about how this decision will be perceived and experienced by her late husband's children.

When I raise my concerns, my mother becomes very upset, so I have stopped discussing the issue with her.

What if the roles were reversed?

I'm unsure what, if anything, my ethical responsibility is at this point.

I do not want to interfere in the decision.

It's ultimately my mother's to make.

But I also feel uneasy remaining silent.

While the outcome may feel deeply unfair to others.

How do we handle this situation?

Wow.

A lot of detail, a lot of detail, but a relatively simple scenario.

The detail.

We need that context.

We need to understand how we got here and how we got here was married late in life.

Second marriages, apparently existing children, blended family.

All of these things, by the way, are very common today.

If you go back 50, 75 years, not very common at all.

The life expectancy of a marriage was life.

And now goodness.

Divorces, second marriages, blended families.

Fairly typical.

Fairly common.

So these are not unusual circumstances.

These are not the types of scenarios that we see that are shocking to the system or hard to understand.

They're very understandable.

Now, having said all that, you've already stumbled into part of the answer that you wish.

Number one, it's your mother's decision.

It's exactly her decision.

It is only her decision.

Your interest in being a peacemaker is very admirable, absolutely understandable and goodness, considering she must be, at this point, 85, 86 years old.

The children involved.

What a ridiculous term for folks who are likely in their 40s.

50s maybe 60s.

Certainly their feelings have to be addressed in some form, in some form, but ultimately, no question about that.

This is your mother's decision.

Now, having said that, does that leave you high and dry, so to speak, in terms of what should happen when she passes?

The answer is no.

Absolutely not.

Even though the the document says that the the asset the house likely to be sold is distributed to her children only, it does not preclude you all your siblings if they wish, from after the fact, after the fact, after your mother has passed, making the decision to share those proceeds.

Share in the sense of in the very real sense of gifting.

So using very simple numbers, let's say the home is worth $300,000.

The three of you, your mother's children inherit $100,000 apiece.

There are two children from your stepfather.

Kind of off to the side that have gotten nothing.

Is it unthinkable or is it workable?

Is a better word for you to share some of yours?

If your siblings wish to share some of theirs by gifting to your stepchildren your step brothers or sisters.

The answer is it's easy.

Easily done.

There's no tax impact.

There's no harm.

There's no foul.

It is a very straightforward process for them and for you and for you.

Again, assuming that the numbers are relatively consistent with my demonstration number of $300,000, not a problem.

Admittedly, if the home is much more valuable, let's say $3 million, the numbers get a little daunting, but doesn't change the fundamental facts.

Still, your mother's decision.

Still follow her instructions through the estate still gives you the opportunity to rectify, so to speak, what you believe to be kind of an ethical dilemma by making gifts.

All of this can be done.

All of this can be done.

And please, please, for your mental health and for your mother's peace of mind, stop discussing it with her.

Allow her the dignity and the independence to make her own decision.

And then how you handle it thereafter.

That'll be up to you.

And I'm sure you'll find a way with a little assistance.

Perhaps a financial advisor, maybe a tax planner that will assist you, maybe in a state planning attorney that can help understand, help you understand the gifting process.

But I'm sure it can be resolved.

Good question.

Indeed.

Goodness.

Happy to be doing that.

Let's go.

Number two.

I love these still 7873 still working.

And he has some good questions.

Gentleman says still working at a job I like.

I will continue to work maybe 5 or 6 more years.

Outstanding.

I contribute to my for nearly all of my income.

Will circle back to that.

The company matches about 4000 of that every year.

Free money matches from the company.

Fantastic.

I have an IRA that where I have rolled my previous four one KS.

It's about $700,000.

Wow.

My advisor said I have to take this year from my IRA.

True, I thought I didn't have to as I was still working.

Sorry.

She said I did and explained the amount of taxes and some other stuff.

I asked if since I don't need or want the money.

Is there a way to not have to take the money?

She said no.

Seems to me like this isn't right.

Thanks for your show and for helping folks like us.

Well, you're very welcome.

And you're very kind.

73 still working if you're part of the triple H club, happy healthy hundred.

Being 73 and still working is a very, very good choice, particularly since apparently he enjoys his work another 5 or 6 years, kind of in his plan.

That's fantastic.

Staying active, staying involved.

Staying social.

Physical.

Keep moving.

Keep your mind sharp.

Fantastic idea.

So good for you.

Currently working.

Currently contributing to A41.

Now he mentions that he puts almost all of his income into the 401.

A lot of folks are not aware that you can do that.

A lot of folks think that it's some relatively small percentage, five, seven, 10% of your income.

The answer is you can put up to 100% of your income.

He apparently does not need the income at this point, so he can put away the vast majority, if not all of it.

There are dollar limits currently about 31,000, maybe just a bit more than that.

So if he's working part time and making 25, he can put the entire amount in the 41K, pay no income tax.

Pretty cool.

Or put it all into a Roth four one still pays the income tax, but now it's tax free going throughout the rest of his life.

So fascinating.

Well done him.

Well done him.

And by the way, 4000 in matching money.

That's not a sharp stick in the eye.

That's real money.

That's real dollars.

Free dollars that the company puts in along with his contributions.

Outstanding.

Can't beat that at all.

Now, does he need to take an R&D from his IRA?

The answer is yes.

The fact that he is still working does not affect the fact that he must.

The rule says he must take RMD at age 73 or later from an IRA, even if he's still working.

Does he have to take RMD from his for one?

The answer is no.

And that's a pretty interesting situation.

You'll find out here in a moment.

Just why.

But at the moment as as his current financial scenario is arranged 700,000 in a four I'm sorry.

In an IRA, he must take from 41K money he's contributing to.

He does not have to take money from.

Is there any way to avoid the D. His advisor.

She says no.

Sadly she's wrong.

Fortunately for him, the answer is yeah.

There's a way to avoid this, and the way to avoid this is actually far easier than a lot of folks might expect.

Now, some of you are already saying, yeah, you can avoid it.

Do a qualified charitable distribution.

Give the money away to charity.

Absolutely right.

You are 100% correct.

But maybe that's not his intent.

That's not what he's saying.

He just doesn't want to take the money and pay tax on it right now.

There is an alternative, the IRA that he currently has in almost every case can be rolled into his current 401.

Now, I understand that his old forum, one case came into the IRA, I got that.

I also understand that the IRA balances can be rolled in almost every case, 99 out of 100 for one K plans I have seen will accept contributions rollover contributions from IRAs.

So if the $700,000 in his IRA goes into his 401, what actually happens then?

Well, a different set of rules applies if you are employed contributing to A41K, you do not need to take R&D from that for one K until you stop your employment.

And by the way, about a year later, a year thereafter.

So if he were to roll his IRA funds into his 401, he no longer has an IRA.

He's no longer required to take money from an IRA that doesn't exist, and he's not required to take money from his 401 until he ends his retirement, until his employment ends.

Pretty interesting.

Difficult to do.

Not particularly if he's working with an effective for one K representative.

All right.

Admittedly, that's about a 5050.

A lot of four one case are not well represented in terms of advice to the clients, to the employees of that company.

But if he's working with an effective representative of his 401, it should literally be a piece of paper.

It's a transfer.

It's a rollover form.

It will identify as IRA.

It will indicate that they wish to have that role directly into his 41K.

He never touches the money.

It's not taxable.

It's not a taxable event.

And as a result his 41K which likely now is relatively small becomes massive.

And as long as he's comfortable with the investments that are available inside his 401, as long as he's happy with the outcome where he does not have to take rides, he's done no more until he retires.

Now, as we put a smile on her face, that that's a very good result, a very good result indeed.

We should also acknowledge that there's there's a little icing on the cake that that may come across.

Or there may become valuable, may become valuable.

The money that goes into the 401 K, it's easy to do.

It's easy to get the money in there and end the the rides.

It's also easy to get the money out.

So if there comes a time where he says, I wish I hadn't done that, I thought it was going to be 5 or 6 years.

It turns out it's only going to be a year or two that I'm going to continue to work.

I really wish I had that money back out just as easy as it was to get the money in.

It's that easy to get the money back out.

One piece of paper, roll it to an IRA and you're done.

So interesting question.

A lot of moving parts, apparently, but is there an answer there?

Sadly, the current advisor said no.

Thank heavens this gentleman watches our more than money show and ask the right question because the answer is absolutely, absolutely yes.

Fantastic.

Shall we go to the next question?

Since I'm the one reading them, I guess the answer is yes.

$6,000 deduction people are talking about.

The question says I have a question about the big beautiful bill.

It's special senior deduction.

Is it in addition to the other deductions that I take.

Is it just an increase in the standard deduction.

Specifically I would normally itemize my deductions.

So can I take an additional $6,000 over and above my itemized deductions.

Or does it just change the standard deduction for seniors.

Excellent question.

This is one of the more interesting pieces of the big beautiful bill.

This is a an opportunity for many seniors to do some very, very interesting tax planning.

So first let's understand the question and let's understand the answer.

The question is there is a very significant difference in filing one's income taxes between itemizing deductions, where you add up all of the available deductions that can be itemized on your schedule, A on your 1040 return, real estate taxes, perhaps interest on mortgages, perhaps charitable contributions, perhaps medical deductions.

Perhaps there is a list.

Most folks are fairly familiar with the list, and you may itemize them.

You may add up the absolute actual dollar amounts of those deductions, and take that as your deduction against your income.

The standard deduction, on the other hand, says that if all of those things add up to something less than roughly now 30,000, $31,000, you may take a higher number.

The standard deduction.

It requires you to not itemize anything.

You don't have to have receipts.

You don't have to have canceled checks.

You don't have to have any evidence of your tax deductions.

You simply take $31,000.

So the initial question, the base question here is, is that only for itemized deductions or is it only for standard.

And the answer is it's for either.

It's for either.

If you're taking a standard deduction, 95% of the folks that we counsel take standard deduction.

Because when they're retired they have often no mortgage interest.

They have much lower itemized expenses than they might have in their working years.

And as a result, this standard deduction is much more generous.

You may use the standard deduction plus the $6,000 per senior taxpayer, senior being 65 or older.

So you can take the standard deduction 31.

And if you're married in 65 or older for both, you can add $12,000 of deductions on top of that, which translates into the first $43,000 of your income, whatever income you have tax free.

That's pretty cool.

If your standard I'm sorry if your itemized deductions exceed the standard deduction instead of 31,000, you've got $50,000 of deductions.

Fantastic.

12,000 married couple on top of that.

Now the first 62,000 is tax free.

Now for most folks, to be fair, again, 95% standard deduction.

So they were doing just fine with that $31,000 standard deduction.

Now they've got this extra extra senior deduction 6000 apiece 12 for a married couple 65 and older.

What might that offer them.

Well it might offer them just a little extra tax savings.

Or it might offer them the opportunity to do what's called a Roth conversion.

Taking some of their IRAs, perhaps they're 68 years old.

They're not required to take anything out yet.

They don't yet have a Roth IRA, but they would like one.

They'd like to have some money where they don't have to pay income tax.

They could soak up that $12,000 of additional deductions in this case senior deduction.

Do a Roth conversion for 12,000.

Typically, when you convert money from an IRA to a Roth, you have to pay tax.

It is considered taxable income typically.

But because of the big beautiful bill because for the advantage for seniors, because of the advantage for seniors, they could convert $12,000 and pay no income tax at all.

So if you find yourself in that scenario where you have an IRA, you're 65 and over, you are pleased to discover you've got this extra $12,000 deduction.

Don't waste it.

Don't let it just ride.

Take advantage.

Do some planning, some tax planning.

In this case, do some planning and make sure that you're doing that conversion.

All those dollars.

If you're 67, you've got six years.

Actually, if you're 66, you've got eight years for you've got nine years.

Because if you were born in 1960 or beyond, your adds don't start until 75.

So you've got a lot of time that you can convert a lot of dollars tax free and end up having them be tax free for the rest of your life.

Pretty cool stuff.

Sure.

Let me take a quick oh, we got plenty of time.

Let's go to one more question.

How do we get started?

That's a great question.

True in so many ways.

For some of the research I've done, it seems that in order to meet with an organization such as yours, I need to have information and documents prepared in advance.

After reading a book about elder law by an attorney, I suggest I suspect there is a questionnaire or something along those lines to get started.

Do you have such a document?

No, no, and I absolutely understand why.

That might be a little confusing to some folks who are listening.

Well, it doesn't make sense that we have to have a certain amount of documents, a certain amount of information, a questionnaire, perhaps.

Doesn't that make sense?

And the answer is, for many financial advisory firms, it does make sense for many financial advisory firms who are more concerned with the numbers.

There are lots of them out there.

There is a well-known financial firm that spends tens of millions of dollars a year marketing that insists that if you are to speak to them, you better be sure that you're in a position to invest $1 million or more.

They do not want to speak to you unless you have a million or more.

There are.

I've lost count of how many local investment advisors, half a million, quarter of a million, three quarters of $1 million or more.

In the more the money world, it's different.

It's different.

We are far less concerned with how much money you have to invest, and we're far more concerned with how long you wish to be affiliated related to in a relationship with a financial advisor.

We are family wealth advisors.

We look generationally, so we have clients with very modest amounts of money.

We have clients with tens of millions, absolutely full spectrum, because our litmus test of who becomes a client who doesn't become a client is very personal.

It's chemistry.

It's chemistry not unlike it's kind of an odd reference, but not unlike dating.

We're getting to know you.

And gosh, most dates don't start with, did you bring all your documents so I can review your tax return before we have dinner?

That's not how we start.

We start with a conversation.

We start with getting to know each other.

We start with finding out what's important to you.

We start with finding out what your goals are, where you wish to be, how important your family is.

And that doesn't require documents.

It doesn't require a questionnaire, requires an open mind, a little bit of time, and a chance to explore.

I hope that makes sense.

Oh, that makes sense indeed.

If it does make sense, or if you simply have questions for us, it's easy for you to access more than money.

It's also an exciting possibility.

You may hear your question answered on a future show.

Send those to me, Gene, and ask Jenny and ask.

You may use the very same email address to request our newsletter.

We have a bimonthly newsletter, More Than Money newsletter.

It's very, very well done.

My team doesn't outstanding job and I contribute a little bit here and there, but that's available to you as well at the same email address.

Gene and ask.

Folks, I want to thank you for spending part of your evening with us.

You could be anywhere and yet you were with us.

So that means that we have a duty to serve you well, and we'll do that again next week when we're back here for another edition of More than one.