$type=slider$meta=0$readmore=0$snippet=0$count=5$show=home

3 Ways to Reduce Tax Burden in Retirement

INDONESIAKININEWS.COM -   3 Ways to Reduce Tax Burden in Retirement Strategically timing distributions from retirement accounts Aligning ded...



INDONESIAKININEWS.COM - 3 Ways to Reduce Tax Burden in Retirement
  1. Strategically timing distributions from retirement accounts
  2. Aligning deductions to maximize their value
  3. Looking at which accounts they have and figuring out the correct order of distributions from those accounts
Before that, though, you're able to voluntarily take distributions, and even if you don't need them, sometimes it can make sense. 

Particularly if there are years between when you retire and when you begin to take Social Security or required minimum distributions.

Those so-called gap years, years where you have particularly low income, can be great years to take money out of your retirement accounts. 

And you can do Roth conversions or simply take that money and use it to fund your lifestyle at low tax rates. So that would be one great way.

Another great way is by aligning your deductions to maximize their value. So under today's tax law, we have a very high standard deduction, that for married couples who are over 65 each, it's more than $28,000 today. 

And because our state and local tax deductions are limited at no more than $10,000. 

So even if you pay $30,000 of state and local taxes between your property and income taxes, you can only take $10,000 as an itemized deduction, which makes it very hard to accumulate enough itemized deductions to be able to itemize in the first place. 

So one way to combat that is to bunch those deductions together. So if you give to charity, let's say $5,000 a year, instead of doing $5,000 every year, maybe one year, you give $20,000, and the next three years you give none. That's another critical way in which seniors can reduce their income taxes.

A third and one other important and valuable way that individuals in retirement can reduce their taxes is by looking at which accounts they have and figuring out the correct order or timing of distributions from those accounts. 

So, for instance, many times individuals have some money in a traditional style account like a 401(k) or a traditional IRA. They may also have some money in a Roth-style account, either a Roth IRA or a Roth 401(k), a Roth 403(b). 

They may also have some taxable in a joint account or an individual account or a revocable trust account in a bank or in a brokerage account. 

And figuring out the right order in which to tap those accounts can reduce the overall tax bill. 

And actually, with the same portfolio, the same investments, can extend the life of that portfolio by, in many cases, 10% or longer, which is a non-trivial amount when we're talking about making sure you don't run out of money before you run out of life. 

Source: thestreet


Name

Baerita,2,Berita,23963,Cek Fakta,3,H,151,HUMOR,7,Internasional,999,Kesehatan,29,Nasional,23000,News,1361,OPINI,81,Politik,6,Seleb,3,Tekno,1,Viral,3,
ltr
item
IndonesiaKiniNews.com: 3 Ways to Reduce Tax Burden in Retirement
3 Ways to Reduce Tax Burden in Retirement
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjOdBY3q2zp7WNPVKwGzDbH4zrWHZpjkysr4Dm4MZOVfmwS4_wpUJXz4QYxN44f_1bhVTMsZSEfL_tiagV-fpNggmCWdUDArQRFVzuBHiOerXTLxuKLxfTT1uCKxkQ_EnKwMAoQtI_bj7msDN4O07x0BNFAQYoka601UlZ9_ancPuDSatUTZETd_XVolQ/w640-h426/images%20(30).jpeg
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjOdBY3q2zp7WNPVKwGzDbH4zrWHZpjkysr4Dm4MZOVfmwS4_wpUJXz4QYxN44f_1bhVTMsZSEfL_tiagV-fpNggmCWdUDArQRFVzuBHiOerXTLxuKLxfTT1uCKxkQ_EnKwMAoQtI_bj7msDN4O07x0BNFAQYoka601UlZ9_ancPuDSatUTZETd_XVolQ/s72-w640-c-h426/images%20(30).jpeg
IndonesiaKiniNews.com
https://www.indonesiakininews.com/2022/07/3-ways-to-reduce-tax-burden-in.html
https://www.indonesiakininews.com/
https://www.indonesiakininews.com/
https://www.indonesiakininews.com/2022/07/3-ways-to-reduce-tax-burden-in.html
true
1493314966655697463
UTF-8
Loaded All Posts Not found any posts VIEW ALL Selengkapnya Balas Cancel reply Hapus Oleh Beranda Halaman Postingan View All RECOMMENDED FOR YOU LABEL ARCHIVE CARI ALL POSTS Not found any post match with your request KEMBALI KE BERANDA Minggu Senin Selasa Rabu Kamis Jum'at Sabtu Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy