CSS Tax Planning for Retirees 1

Question 1

What percentage of Social Security benefits may be included in federal taxable income for a single filer with combined income exceeding $34,000?

Accepted Answer

85%

Answer

0%

Answer

50%

Answer

100%

Question 2

What is a Roth conversion and why might it benefit retirees in lower income years?

Accepted Answer

Moving money from a traditional IRA to a Roth IRA, paying taxes now at a lower rate to enjoy tax-free growth and withdrawals later

Answer

Converting a Roth IRA to a traditional IRA to delay taxes

Answer

Rolling over a 401(k) to avoid all taxes permanently

Answer

Converting annuity payments to Roth accounts

Question 3

At what age must traditional IRA and 401(k) account holders begin taking required minimum distributions (RMDs) under current SECURE 2.0 Act rules?

Accepted Answer

73

Answer

70½

Answer

72

Answer

75

Question 4

Which IRA withdrawal strategy can help retirees minimize taxes by managing their income across tax brackets?

Accepted Answer

Bracket management: filling lower tax brackets with traditional IRA withdrawals or Roth conversions before RMDs begin

Answer

Always withdrawing from the Roth IRA first

Answer

Withdrawing all IRA funds in the first year of retirement

Answer

Using only taxable brokerage accounts for income

Question 5

What is a Qualified Charitable Distribution (QCD) and how does it benefit retirees over 70½?

Accepted Answer

A direct transfer of up to $105,000 from an IRA to a qualified charity that counts toward the RMD and is excluded from taxable income

Answer

A tax credit for charitable gifts made after retirement

Answer

A deduction only available to itemizers

Answer

A gift of appreciated stock to a donor-advised fund

Question 6

What happens to unused capital loss carryforwards at the death of a taxpayer?

Accepted Answer

They expire at death and cannot be used by the estate or heirs

Answer

They transfer to the surviving spouse's individual tax return

Answer

They carry over to the estate tax return for 10 years

Answer

They are converted to ordinary loss deductions for heirs