The 3 Topics Listeners are Asking About, Ep #127

<p>What happens when you sell your primary home? What are the tax implications? What’s the deal with long-term care insurance? Do you need it? What are Roth 401ks and IRAs and why do you need one? I’ve been getting numerous questions about these three topics, so in today’s episode of the Retirement Made Easy podcast I’ll break them down. Don’t miss it!</p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[4:02] Submit a question at RetirementMadeEasyPodcast.com</li> <li>[5:45] Popular Topic #1: What happens when you sell your house</li> <li>[10:33] Popular Topic #2: Long-term care insurance</li> <li>[17:16] Popular Topic #3: Roth IRAs and 401ks</li> </ul> <h2>Popular Topic #1: The tax implications of selling your primary residence</h2> <p>What happens when you sell your home? Will you owe taxes on the gain? Let’s say a hypothetical married couple bought their home for $300,000 20 years ago and it’s worth $600,000 today. That’s a $300,000 gain. Will they realize a $300,000 capital gain on the sale of their home?</p> <p>According to the IRS, if you sell your primary residence, a couple filing jointly has a $500,000 capital gain exclusion on the sale of that residence. This couple would not have to pay capital gains taxes on the first $500,000 of profit. If you’re single, the exclusion is $250,000. </p> <p>However, to qualify for the exemption, you have to have lived in the home full-time for two of the last five years. What if you make improvements to the home? Listen to learn a bit more!</p> <h2>Popular Topic #2: Long-term care insurance</h2> <p>Some states (like <a href= "https://retirementmadeeasypodcast.com/will-you-be-forced-to-buy-long-term-care-insurance-ep-74/" target="_blank" rel="noopener">Washington</a>) require you to buy long-term care insurance through an employer. Most of the questions I’ve received are geared toward the basics of long-term care, so here they are:</p> <ul> <li><strong>Traditional long-term care insurance</strong>: You pay into a policy, similar to home