Retirees: Tax Planning Can Maximize Savings and Wealth
Many retirees are caught off guard by the impact of taxes on their retirement income. Strategic planning can help manage this burden and maximize savings.
RoseMark Advisors recommends diversifying tax buckets. This involves spreading retirement savings across traditional IRAs/401ks, Roth IRAs, and taxable accounts. By doing so, retirees can strategically manage their taxable income each year.
A key strategy is planning Roth conversions during lower-income years. This can significantly shrink future Required Minimum Distributions (RMDs), reduce future tax brackets, and lower lifetime tax bills. A complimentary Retirement Tax Review can uncover hidden tax traps and save thousands in future taxes.
For conservative retirees, taxes can reduce what they can invest in family, church, and community. Thoughtful planning can help reduce taxes, stretch savings further, and pass more wealth to family. Coordinating Social Security and retirement account withdrawals can also reduce taxed benefits.
Retirees should be aware of the potential tax burden from RMDs, Social Security taxation, capital gains, and Medicare premium surcharges. RoseMark Advisors helps reduce taxes and pass more wealth to loved ones by optimizing tax benefits and retirement income security. For conservative pensioners, early conversion of Roth accounts can be strategically important, taking advantage of favorable tax conditions before potential future changes in tax laws or financial circumstances.
