How to Avoid the RMD Tax Trap: Protect Your Lifetime of Tax Savings скачать в хорошем качестве

How to Avoid the RMD Tax Trap: Protect Your Lifetime of Tax Savings

As retirement approaches, your financial strategy shifts. What was once a simple plan of contributing to tax-deferred accounts like 401(k)s and IRAs becomes more complex with required minimum distributions (RMDs) and other income streams. While tax savings during working years are valuable, many retirees wonder if RMDs will trigger higher tax bills later. Spencer, a 48-year-old tech professional, is concerned about future taxes on his retirement savings. Like many high-income earners, Spencer contributed to pre-tax accounts, enjoying tax deductions along the way. However, with RMDs starting at age 75, his future withdrawals could push him into higher tax brackets. James walks Spencer through strategies to mitigate this. One option is Roth conversions, where Spencer can pay taxes now at lower rates, reducing future RMDs. Another approach involves strategically withdrawing from taxable accounts first, allowing tax-deferred accounts to grow longer. For charitably inclined retirees like Spencer, qualified charitable distributions (QCDs) can also reduce RMDs while meeting philanthropic goals. Ultimately, ongoing tax planning and flexibility are key to managing retirement income efficiently and preserving wealth. ======================= Submit your request to join James On the Ready For Retirement podcast 👉 Apply Here: https://form.jotform.com/240808233107146 On a Retirement Makeover episode 👉 Apply Here: https://form.jotform.com/Conole/retir... Learn the tips & strategies to get the most out of life with your money. Get started today → https://www.rootfinancialpartners.com/ Get access to the retirement software I use in this video and more → https://retirement-planning-academy.m... 🔔 Make sure to subscribe here to be notified for future videos!    / @rootfp   _ _ 👥 Make sure to connect with us on all socials below → https://beacons.ai/rootfinancialpartners ⏱Timestamps:⏱ 0:00 - Spencer and his concerns 4:34 - Portfolio and assets 7:39 - A 30,000-foot view 12:20 - Income and expenses in retirement 16:16 - Required distributions 19:43 - A helpful graph 23:19 - Comparing tax strategies 28:01 - Be careful of overcorrection 30:38 - Charitable giving 32:14 - Revisit your strategy yearly Other videos we think you'll like: About Root:    • Financial advisors with heart.   Worried about retirement? Start here:    • Worried About Retirement..Start With a Bla...   -- Advisory services are offered through Root Financial Partners, LLC, an SEC-registered investment adviser. This content is intended for informational and educational purposes only and should not be considered personalized investment, tax, or legal advice. Viewing this content does not create an advisory relationship. We do not provide tax preparation or legal services. Always consult an investment, tax or legal professional regarding your specific situation. The strategies, case studies, and examples discussed may not be suitable for everyone. They are hypothetical and for illustrative and educational purposes only. They do not reflect actual client results and are not guarantees of future performance. All investments involve risk, including the potential loss of principal. Comments reflect the views of individual users and do not necessarily represent the views of Root Financial. They are not verified, may not be accurate, and should not be considered testimonials or endorsements. Participation in the Retirement Planning Academy or Early Retirement Academy does not create an advisory relationship with Root Financial. These programs are educational in nature and are not a substitute for personalized financial advice. Advisory services are offered only under a written agreement with Root Financial.