Tax Planning
Understanding what your tax picture may look like through retirement can help you make better financial decisions and be more in control of your tax liability. Our advisors are able to help you understand this and work with your personal accountant where needed.
Variables that impact your tax bracket:
Your tax diversity:
The balance between Tax-Deferred, After-Tax, and Tax-Free Roth Investment Funds in your Retirement Portfolio
Current and Future Income Expectations:
How you expect your income will change through retirement.
Current and Future Tax Rate Expectations:
How you expect Federal & State taxes will change through retirement.
Roth Conversions:
Are Roth Conversions a good tax planning strategy for your household? What pitfalls do you need to look out for before, during, and after retirement?
IRMAA:
Will your income level put you at risk for being subject to IRMAA? (See Medicare Section)
Required Minimum Distributions (RMDs):
Understanding the impact that Required Minimum Distributions will have on your marginal tax rate in retirement.
Required Minimum Distributions is the amount that must be removed from a tax-deferred account every year once a specific age is reached, or earlier from an Inherited IRA for certain beneficiaries. Age range varies from 72-75 based on your year of birth.
Qualified Charitable Distributions (QCDs):
If over the age of 70-½, you have the ability to give to a 501(c)(3) charity directly from your Individual Retirement Account as a tax-free withdrawal. (Must meet specific requirements)
Integrating RMDs with QCDs can present tax planning opportunities to reduce or neutalize otherwise taxable income from RMDs.