"You worked hard for your money all your life so keeping the greatest part of it out of the taxman's icy grip begins by planning early. There are numerous paths to take to minimize your retirement tax bill, and some are quite complicated and complex strategies that need years of planning to come to fruition. Because retirement planning is no longer a straightforward effort, consult with a tax professional and a financial planner early on to make best use of the options available."
"The taxman cometh, even for those in retirement. And if you don't have a plan to reduce what you owe in your Golden Years, then the IRS may end up taking more than it is entitled to. Money in your pocket is always better than in the government's. However, according to a recent Northwestern Mutual study, one out of every three Americans is failing to plan on how to reduce their retirement tax burden. The old saying, failing to plan is planning to fail, holds true."
Retirees face significant tax liabilities when retirement accounts are not managed to reduce taxable distributions. One out of three Americans fails to plan to reduce retirement taxes. Multiple strategies exist to minimize retirement tax bills, and some strategies are complicated and require years of planning. Early consultation with a tax professional and a financial planner improves use of available options. Tax laws change over time, affecting RMD ages, conversion rules, contribution limits, QLAC regulations, and 529-to-Roth options. Satisfying the year's required minimum distribution is necessary before executing a Roth conversion. Qualified Longevity Annuity Contracts (QLACs) can be purchased with qualified retirement funds.
Read at 24/7 Wall St.
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