Retirement Questions You Didn’t Know You Should Be Asking, Ep #196

In this episode, I tackled some of the most common and pressing questions I’ve received from listeners, prospective clients, and current clients at Retire Strong Financial Advisors. These questions are all centered around one big theme: preparing for retirement with clarity and confidence. Whether you’re wondering about old 401(k)s, required minimum distributions (RMDs), or how to structure your retirement income, we covered a lot of ground.

One of the first things I addressed was the new government resource for tracking down forgotten retirement accounts: LostAndFound.dol.gov. If you think you might have an old 401(k) or pension from a previous employer, this secure database can help you locate it. 

If you’re nearing retirement, it’s crucial to understand how RMDs work, what your contribution limits are, and whether your plan provider supports the latest updates, such as the changes from the SECURE Act 2.0. Always check with your financial advisor or plan administrator to make sure you’re making the most of your options.

Social Security questions came up a lot, too. I discuss survivor benefits for ex-spouses, how to correct errors in your earnings record, and what happens if you’re working while collecting benefits. If you’re past full retirement age and no longer need the income, you can even suspend your benefits to earn delayed retirement credits. And if you inherit an IRA or Roth IRA, you’re not stuck with your parents’ financial institution, as you can transfer those assets to a custodian of your choice.

Finally, I revisited the bucket strategy. This is a framework we use at our firm to help clients organize their retirement savings. Bucket One is your emergency fund, Bucket Two is your income bucket for regular withdrawals, and Bucket Three is your growth bucket for long-term investing. Matching your account types (Roth, after-tax, and pre-tax) to the right buckets is key. Understanding how much you have in each type of account is the first step. Everyone’s situation is different, but the strategy gives you a roadmap to make smarter decisions and build a retirement plan that fits your life.

You will want to hear this episode if you are interested in…

  • (00:00) Intro.
  • (03:40) How to find old retirement accounts.
  • (11:40) Common Question on Social Security.
  • (19:30) How to get your money out of life insurance policies.
  • (22:50) How the Bucket system works for you.

Helping Those Close to Retirement Navigate their Accounts

One major topic I covered was how to track down forgotten retirement accounts like old 401(k)s or pensions, especially if you’re unsure whether the funds are still active. I introduced a helpful new tool, LostAndFound.dol.gov, a secure government database created under the SECURE Act 2.0, which allows you to search for lost employer-sponsored retirement plans. I also covered the rules around required minimum distributions (RMDs), which kick in at age 73.

If you’re still working and contributing to your current employer’s 401(k), you may be able to delay those RMDs, but IRAs don’t offer that flexibility, and distributions must begin regardless of employment status. On the contribution side, I explained that in 2025, the standard 401(k) limit is $23,500, with an additional $7,500 catch-up for those 50 and older, totaling $31,000. For those aged 60 to 63, a new “super catch-up” provision allows an extra $11,250, though many plan providers haven’t yet updated their systems to support it. 

Smart Strategies for Navigating Social Security

In this episode, we also cover questions that focus on survivor benefits, earnings corrections, working while collecting, and voluntary suspension, all aimed at helping retirees make informed, strategic decisions. Another common issue is incorrect earnings records; since Social Security benefits are based on your top 35 earning years, it’s crucial to fix any errors within three years, three months, and 15 days of the year the wages were paid.

I also clarified that working while collecting Social Security can actually increase your benefit if those earnings replace lower years in your record. However, if you’re under full retirement age and earn more than $23,400, your benefit could be temporarily reduced. Lastly, I explained that if you inherit an IRA and no longer need Social Security income, you can file a voluntary suspension to earn delayed retirement credits and potentially reduce your tax burden. 

What is the 3 Bucket Strategy?

The 3 Bucket System is a retirement strategy that divides your savings into three categories: emergency fund, income, and growth. Bucket One holds liquid, after-tax money for unexpected expenses like medical bills or home repairs. Bucket Two provides a steady income through withdrawals from retirement accounts, often funded with pre-tax assets like IRAs and 401(k)s.

Bucket Three focuses on long-term growth to combat inflation, typically using Roth accounts and investments with higher risk tolerance. Matching your account types to the right buckets helps create a balanced, tax-efficient retirement plan tailored to your needs.

 

Resources & People Mentioned

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