Loss of senior freeze
Ages 93 ,& 81. Close to losing sr freeze due to ss increase & rmds. Should I just take a lot out of traditional iras & then go back to freeze app. ? Is there some kind of strategy?
Terry Says
This is an interesting problem. Here is the link to everything you need to know about the senior freeze:
https://www.cookcountytreasurer.com/seniorcitizenassessmentfreezeexemption.aspx
There is also a freeze deferral program, which means up to $7500 of your taxes can be deferred and paid after death when the home is sold.
https://www.cookcountyassessor.com/news/deadline-apply-senior-citizen-real-estate-tax-deferral-program-march-1
But with both programs, your household income must be below $65,000. And those income limits haven’t been adjusted to reflect increases in SS payments, because of inflation.
I’m going to contact Maria Pappas, cook county treasurer, and mention this to her. In the meantime, there’s not much you can do about your SS benefits. But if you DO take extra money out of your IRA now — to reduce future RMDs — be very careful. That extra income in one year could result in your Medicare monthly payments rising sharply!!
It’s not much consolation, but this is a relatively good problem to have: too much income in retirement!
