Are you feeling rattled by Required Minimum Distributions (RMDs)? We’re here to help. Today we get deep into managing RMDs as we explore an article by Pam Krueger from Kiplinger’s. I outline the complexities of RMDs, share strategies to minimize tax impacts, and talk about how to craft a "perfect RMD" strategy. Plus, I’ll dig into why so many retirement podcasters, myself included, have no plans to retire themselves.
We kick things off by understanding the basics of RMDs, including when and how retirees must start withdrawing funds from tax-deferred accounts like IRAs and 401(k)s. I share exactly how the timing of RMDs, starting at age 73 (or potentially later under new laws), can have huge tax implications. I also detail strategies to minimize taxes through Qualified Charitable Distributions (QCDs) and preemptive withdrawals.
And of course, co-host Bret Mulvaney and I respond to a listener's intriguing question: why don’t retirement podcasters retire?
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Are you sure you're making the right call when deciding between Roth and traditional retirement accounts? A recent article on the Michael Kitsis blog started a debate into why, during your peak earning years, contributing to traditional pre-tax accounts might actually make more sense—even if tax rates rise in the future.
I’m going to break down why high-income earners can often benefit more from deferring taxes now and paying them later in retirement when they have more control over their income.
I’ll explain how using tax deductions at your highest earning years and withdrawing funds at lower tax rates in retirement can save you a significant amount in taxes over time. It’s all about maximizing your flexibility and finding opportunities to lower your tax burden down the road.
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What could happen to our taxes if the 2017 Tax Cuts and Jobs Act (TCJA) expires in 2025? This week, we explore a Wall Street Journal article analyzing the TCJA’s potential expiration and its varied impacts across the U.S. from coast to coast.
These tax cuts, enacted under President Trump, included reductions across multiple income brackets, increased standard deductions, and expanded child tax credits. However, when they’re set to expire, the shift could mean substantial tax hikes for many households.
The discussion centers on the unique impact of these changes in different regions, showing how factors like income levels and state taxes could influence the extent of the increase.
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Are you actually prepared for how upcoming tax law changes could impact your retirement? I analyze insights featured on the Nerd’s Eye View blog, focusing on key tax strategies for retirees. With the potential 2025 sunset of the Tax Cuts and Jobs Act approaching, potential changes in marginal tax rates, personal exemptions, and deductions could significantly affect tax planning, especially for higher-income earners.
Flexibility is super important when preparing for uncertain legislative changes. Roth conversions and gains harvesting are explored as ways to mitigate the potential impact of rising tax rates. By taking action now, retirees can strategically time income recognition and navigate these upcoming shifts in tax policy.
We’re going to keep this conversation centered around forward-thinking tax planning based on Nerd’s Eye View insights, helping retirees and financial advisors remain adaptable and ready for the changes that may come. Understanding these strategies can help you out big time, and lead to smarter decisions as the future tax landscape unfolds.
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