Episode 20: Listener Questions–Social Security for Grandkids, and Reverse Rollovers

In this week’s episode, Devin and John answer reader questions that come in through the email.

First, Linda wants to know if her grandchildren are eligible for benefits since they live with their Social Security eligible grandparents.  Grandkids can get Social Security off of their grandparents’ record, but there are certain qualifications required.  Devin has written about this at his blog, Social Security Intelligence, in an article called Social Security Benefits for Grandchildren.

The benefit amount will vary, and it depends on whether the grandparent is alive or has passed away.  It can be a pretty sizable amount, but it is limited to the family maximum benefit.  If you are caring for grandchildren, you definitely want to listen to the podcast, read the article linked above, and do more research.

Clyde wants to know if there is any benefit to rolling an IRA into his employer 401(k).  John explains there are a couple of reasons why this might be a good idea:

  • If your employer is offering a high-quality, low-expense 401(k)
  • If you want to stop working and take penalty-free withdrawals before reaching the age 59 1/2
  • If you don’t want to take distributions at age 70 because you’re still working
  • If you have after-tax money in your IRA, are still working and make too much money to contribute to a Roth account

Of course, this can be tricky and you will probably want some professional help.  But just knowing that this is a thing that you can do, and when you might want to, is the first step.

Then, Devin and John talk about the qualified charitable IRA distributions, and how it can save on taxes.  If you are required to take distributions from your IRA, and you don’t need that money, you can assign the distribution to a charitable organization and save on taxes.

Do you have questions for Devin and John?  Send them to questions@bigpictureretirement.net.