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Retirement Tax Planning

The goal of strategic retirement tax planning is to minimize taxes and maximize your hard-earned assets.

Planning for retirement involves more than just accumulating savings. The money you’ve accumulated must be turned into income—and this means paying taxes.

Most people save for retirement in tax-deferred accounts, such as 401(k)s. But tax-deferred means just that: at some point, you’ll have to pay taxes on all this money.

Tax-deferred accounts come with Required Minimum Distributions (RMDs) at certain ages. Proactive tax planning may save you significant amounts of money in taxes over your retirement years.

retirement tax planning
proactive tax planning

Are You Looking Back, or Forward with Your Taxes?

Most people approach tax planning by looking back at the previous year, aiming to save as much as possible. We do this when we file our tax returns.

However, there’s a unique window of opportunity between the ages of 60 and 73, when looking forward may lead to incredible tax savings. By doing so, you can navigate tax traps and prevent being pushed into higher tax brackets during your retirement years.

The Four Account Types to Address
in Your Tax Planning

1. Tax-Deferred Accounts

These include 401(k)s, 403(b)s, traditional IRAs, and more. Contributions to these accounts reduce taxable income. However, required minimum distributions (RMDs) begin at age 73, potentially pushing you into higher tax brackets during retirement.

1. Roth Accounts

Contributions and conversions to Roth 401(k)s and Roth IRAs are made with after-tax dollars, offering tax-free withdrawals in retirement. Roth IRAs are exempt from RMDs during your retirement years, providing more control over taxes.

1. Taxable Accounts

Traditional bank and brokerage accounts funded with after-tax dollars provide flexibility. Capital gains and investment income are taxed annually, with no RMDs.

1. Health Savings Accounts (HSA)

While not traditionally considered retirement accounts, HSAs offer tax advantages. Contributions reduce taxable income, and withdrawals for qualified medical expenses are tax-free. HSAs are also exempt from RMDs.

Let Us Help You Optimize Your
Retirement Tax Planning

Reducing taxes is crucial for preserving your retirement plan and assets.

We help you develop a plan to reduce your lifetime tax bill. Avoid overpaying taxes and create a proactive tax plan with our expert guidance.

We utilize comprehensive retirement tax planning strategies to maximize your retirement assets.

Your Retirement Transition Blueprint includes a wide range of strategies to optimize your tax decisions.

By considering these elements, you can navigate the complexities of tax laws and optimize your retirement tax planning for a financially secure future.

Consult with our expert financial advisors to develop a tailored tax strategy aligned with your investment needs and goals.

retirement tax planning