Best Retirement Income Practices by Warren Elkin, Lifetime Retirement Income Planning

Lifetime Retirement Income Planning with Warren Elkin

Lifetime Retirement Income Planning with Warren Elkin

Retirement Income Tax Tips. For many of our working years we concentrate on saving for retirement. When the time comes to actually retire, our concerns shift to how best to allocate the funds we worked so hard to save. Your withdrawal plan should be formulated around many factors, including the taxes you’ll need to pay. It’s impossible to get around paying taxes on retirement accounts that were funded with tax-deferred money. However, you can implement an advantageous withdrawal strategy that can provide some tax relief. Consider four retirement income tax tips.

  1. Start with tax-deferred accounts. You’ll pay taxes on 401 (k) and IRA account withdrawals since they were funded with money that is usually removed from your paycheck before income taxes are taken out. However, remember that you can count losses to these accounts, which can help offset the taxes on the withdrawals. Additionally, some of the investment growth will qualify for a lower long-term capital gains rate.
  2. Let tax-free accounts sit as long as possible. We call them tax-free, but in reality you paid taxes on the money before you deposited it. A Roth 401(k) is the most common type of account with this structure. Saving these accounts for last gives the balance more time to grow without the tax burden, giving your overall retirement balance some added cushion.
  3. Remember the government deadlines. Being overly conservative with your withdrawals may bite you in the long run. The federal government requires you to withdraw a minimum amount from 401(k)s and IRAs by the age of 70 1/2. A 50 percent tax awaits those who do not comply.
  4. Be ready to make changes. No two retirement strategies are the same, and the same person’s strategy may change over time. Many factors come into play, including legislation. Tax laws and rules governing retirement accounts change rapidly. Stay up-to-date and make needed adjustments.

Determining how to structure your retirement withdrawals is challenging. The amount of tax to be paid is just one variable to consider. Contact us for help developing a retirement strategy that fits your needs.

Make sure you have all the facts necessary to make the right decision with your financial future by calling us today! We can help you with information regarding Annuity, Annuities, Fixed Annuity, Fixed Annuities, Variable Annuity,Variable Annuities, Immediate Annuity, Immediate Annuities, Income Annuity,Income Annuities, Deferred Annuity, Deferred Annuities, Index Annuity, Index Annuities, 401k Rollover, IRA Rollover, Retirement Income Planning, Immediate Fixed Annuity, Immediate Fixed Annuities, Annuities Calculator, Deferred Variable Annuity, Immediate variable Annuity, Immediate Income Annuity, Immediate Income Annuities, Deferred Variable Annuities, Best Fixed Annuities,
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Speak with us now at 877-476-5051, email Warren at warren@warrenelkin.com, or go to www.LifeTimeRetirmentIncome.com to learn more about Warren Elkin of Norhill Financial and his unique process to make sure your financial decisions are made in your best interest.