Ep. 56 Cut To The Chase: Simplify The 3 Tax Bombs In Retirement | Easy Guide
The transition to retirement should come with an anticipation of peace and freedom, but navigating the tax landscape can feel like walking through a minefield. In this episode, we're making tax planning easy by identifying and simplifying the key "tax bombs" you need to be aware of in retirement. Understanding these can help you make informed decisions to protect your income and maximize your savings.
Tune in to discover the nuances of tax brackets, how different account types impact your tax bill, and the often-overlooked implications of Social Security and Medicare charges. We’ll also break down Required Minimum Distributions (RMDs) and offer practical strategies to minimize your tax burden in retirement.
Listen To The Episode:
What You’ll Learn:
How to understand and leverage your tax brackets, distinguishing between federal and state rates.
The crucial difference between IRA and Roth IRA distributions and their impact on your taxable income.
What a Roth conversion is, and how it can affect your current and future tax liability.
How your income can influence your Social Security taxation and Medicare (IRMAA) charges.
The benefits of utilizing taxable brokerage accounts, especially for early retirement and capital gains.
Everything you need to know about Required Minimum Distributions (RMDs) from pre-tax retirement accounts, including ages and calculation methods.
Strategies to minimize your tax burden and avoid common pitfalls in retirement.
Ideas Worth Sharing:
Know your tax bracket and use Roth IRA withdrawals strategically to avoid jumping into a higher bracket.
Plan Roth conversions carefully to stay within your current tax bracket and save on future taxes.
Delay Social Security until age 70 if possible to maximize benefits and minimize taxable income early in retirement.
Check your RMDs early in the year to avoid last-minute tax surprises or penalties for missing the deadline
Resources:
Eric Maldonado, CFP®, MBA: (805)250-4552 | info@aquilawealth.com | Website | Contact Us
Disclosure: Aquila Wealth Advisors, LLC is a registered investment advisor in the state of CA, LA, and in other jurisdictions where exempt. All content on this podcast is for information purposes only. All information or ideas provided should be discussed in detail with an advisor, accountant, or legal counsel prior to implementation.
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