The calculation the IRS uses to determine how you pay taxes on retirement income creates a danger zone where taxes can be SIGNIFICANTLY amplified. If you fall into this danger zone, you could pay a MUCH higher tax rate on your retirement income. In today's video, I'll talk about how to avoid the pitfall of paying way too much in taxes. 🔥🔥 Get the Ultimate Social Security Cheat Sheet! It takes the essential information from the 100,000 page Social Security website and condenses it down to just one page! 🔥🔥 Don’t miss my free online workshop, “How to Choose the RIGHT Age to File for Social Security.” In this workshop you’ll learn: ✔The Most Important Factors to Consider BEFORE You File for Benefits ✔How to Coordinate Your Social Security Filing Decision with Your Other Assets & Income for a Tax-Efficient Distribution Strategy ✔Why This Is The Biggest Decision of Your Retirement Access the workshop today at this link ➡️ Want to take a deeper dive into investment management and financial planning with Devin and his team? -- 📊 Get a customized Social Security filing plan. Start with a 10-minute discovery call with a Registered Social Security Analyst → Financial Advisors! Become an RSSA and discover how Social Security expertise can unlock massive opportunities for your practice -- 🧑💻 ➡️ Get a copy of my newly revised book here -- ➡️ Simple Questions? Join my FREE Facebook Group! ➡️ If your question is about the WEP/GPO, join this Facebook group instead See Disclosures Below ⭐⚠️⭐Please read this⭐⚠️⭐ ⚠️I am not an attorney, SSDI advocate, or affiliated with the Social Security Administration or any other entity of the US Federal Government . I am a practicing financial planner, but I’m not YOUR financial planner and since I don’t really know you, I can’t give you advice. So please don’t take this video as specific advice for your specific situation. Consult your own tax, legal and financial advisors. 🙇🙇🙇🙇🙇 -----------------------------------------------------------------------------------------------------...(read more)
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The Retirement Tax Bomb is a scary situation that awaits many retirees. It is a circumstance in which you have accumulated your retirement funds in a pre-tax account like Traditional IRA, 401(k) or 403(b) plan and are forced to pay a higher tax rate on each withdrawal during retirement. This tax bill could have a significant impact on your retirement income. When you contribute to a pre-tax retirement account, you may not have to pay taxes on that money immediately. Instead, you’ll have to pay the taxes when taking out the money in retirement. This differs from a Roth IRA, where taxes are paid upfront, and withdrawals in retirement are tax-free. The concept of you paying taxes on your retirement account may not feel like a problem until you start receiving distributions. Because not only will you pay tax at your ordinary income tax rate, but you'll also be taxed on the full amount, including any interest and investment gains you’ve earned over the years. Many retirees who have accumulated large amounts of savings in their pre-tax retirement accounts can be pushed into a higher tax bracket once they start to take distributions. During retirement, your tax bill could be compounded by other taxes like Social Security taxes, Medicare premiums, state taxes, and other unexpected expenses. This can lead to a significant drain on your retirement savings. The good news is, you can avoid a retirement tax bomb if you start planning early. Here are some strategies you may consider: 1. Convert to a Roth IRA: Consider converting a portion of your pre-tax retirement funds to Roth IRA. You will pay taxes on the conversion amount, but qualified withdrawals will be tax-free. 2. Withdraw Early: You can start taking withdrawals from your pre-tax accounts before you reach age 72, the age at which you're required to withdraw a certain percentage of funds each year. This strategy can reduce the total tax bill you would be likely to incur, and you’ll have more control over your retirement tax bill. 3. Diversify Your Account: Try to diversify your retirement account by investing in after-tax or Roth accounts, where appropriate. Having a mix of taxable, tax-deferred, and tax-free accounts will help you better manage your taxes during retirement. In conclusion, a retirement tax bomb can be a big problem for retirees. By converting to a Roth IRA, withdrawing early, and diversifying your accounts, you can reduce the impact of this tax bomb on your retirement income. Planning for a retirement tax bomb early can help you better manage your tax responsibilities and enjoy a more comfortable retirement. https://inflationprotection.org/the-explosive-nature-of-retirement-taxes/?feed_id=86304&_unique_id=64339cb32c948 #Inflation #Retirement #GoldIRA #Wealth #Investing #DevinCarroll #Retirement #retirementplanning #socialsecurity #socialsecuritydisability #SpousalIRA #DevinCarroll #Retirement #retirementplanning #socialsecurity #socialsecuritydisability
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