Taxes
Showing 50 results of 389
How to Estimate Your Tax Bill in Retirement (And How to Pay it)
Oct 01 2024
David has a question about taxes in retirement: When you’re retired and no longer getting a regular paycheck from which your employer withheld tax payments on your behalf, how do you estimate th...
buzzsprout.com
Retirement Income Strategies: IRA vs. Brokerage Withdrawals (The Tax-Smart Choice for Retirees)
Oct 01 2024
Mark asks a common question – What should I do regarding my withdrawal strategy? Should I first pull from my brokerage account or my IRA? There is no one-size-fits-all answer, but James provides...
buzzsprout.com
Lump Sum vs. Annuitization: Tax Implications for Your Non-Qualified Annuity
Oct 01 2024
Joe is planning for retirement and wants to minimize his tax burden, especially on the interest earned from his three annuities. James explains that non-qualified annuities are purchased with post-tax...
buzzsprout.com
Pay ZERO Capital Gains Tax vs Roth Conversions in Retirement: How to Determine Which is Best
Oct 01 2024
Listener Drew asks about a tax strategy for juggling capital gains and Roth conversions. While it can be a complicated question – especially when large accounts are involved – James provid...
buzzsprout.com
Tax-Smart Strategies for Wealth Transfer: Secure Your Family's Future
Oct 01 2024
James responds to listener Jerry’s question about the optimal time to distribute inheritance or charitable gifts: before or after passing away. James walks listeners through four important thing...
buzzsprout.com
Roth Conversion Strategies to Protect Your Spouse's Future Tax Burden
Oct 01 2024
A listener says, “Eventually, one spouse will pass before the other, which will often catapult the survivor into a significantly higher tax bracket. Shouldn’t a Roth strategy take this int...
buzzsprout.com
At What Point Should I Take the Tax Hit on Unrealized Gains?
Oct 01 2024
Benjamin, nearing retirement at 65, faces a familiar dilemma with his taxable account housing expensive mutual funds. Despite their underperformance, converting to low-cost index funds entails a signi...
buzzsprout.com
What's the Right Roth Conversion Amount to Avoid a Tax Nightmare in the Future?
Oct 01 2024
Sammy, a 51-year-old retiree, is seeking advice on how much she should convert from her traditional IRA to a Roth IRA each year to avoid jumping tax brackets and minimize the taxation of her social se...
buzzsprout.com
Roth IRA Tax-Free Withdrawals: 5-Year Rule Explained
Oct 01 2024
James explores the nuanced aspects of Roth IRAs, shedding light on intricacies that can confound even experienced investors. Through a listener question from Manfred, a retiree contemplating a $50,000...
buzzsprout.com
Tax-Loss Harvesting Strategies to Maximize Your Benefit and Avoid Costly Mistakes
Oct 01 2024
Tax loss harvesting is a strategy that investors use to reduce their tax bill. However, there are many misconceptions about tax loss harvesting, including when it's valuable and how to do it ef...
buzzsprout.com
Five Tax Strategies to Preserve Your Retirement Savings
Sep 29 2024
From Roths to HSAs to creative Social Security timing, retirees have many options to minimize their taxes. You might be surprised what a difference it can make....
kiplinger.com
6 New Retirement Rules And Tax Changes Everyone Should Know
Sep 27 2024
Sweeping new retirement rules and tax law changes touch everyone from high-earners, retirees, employees, employers, and individuals inheriting retirement accounts....
forbes.com
Age Plus 20 Rule for Retirement Contributions - 496
Sep 24 2024
How much should you save in pre-tax accounts vs. post-tax accounts? Joe Anderson, CFP® and Big Al Clopine, CPA spitball on the "age plus 20" rule for retirement savings, Roth 401(k) contributions ...
purefinancial.com
Run The Numbers, Check Your Facts, Then Check Your Gut
Sep 23 2024
Learn to make smarter financial decisions with math-driven strategies. James Lange shows how Roth IRA conversions and tax planning can maximize wealth and reduce taxes....
forbes.com
Higher Taxes Are on the Horizon. Don’t Let Them Spoil Your Retirement.
Sep 22 2024
Unsustainable deficits will likely force an end to this era of low taxes, but you can plan for it....
nytimes.com
3 Strategies to Pay Roth Conversion Taxes - 495
Sep 17 2024
Today on Your Money, Your Wealth® podcast 495, Joe Anderson, CFP® and Big Al Clopine CPA spitball on three different listeners’ strategies for paying the tax on a Roth conversion now, to...
purefinancial.com
Using an IRA Distribution and Withholding to Reduce Estimated Tax Payments
Sep 16 2024
An IRA distribution can be used to reduce or eliminate those pesky quarterly estimated tax payments. See how. The post Using an IRA Distribution and Withholding to Reduce Estimated Tax Payments appear...
financialducksinarow.com
This Double-Dip Trust Benefit Really Is Too Good to Be True
Sep 15 2024
Let's clear up the confusion among some trust makers and taxpayers over how grantor trust status affects the step-up in basis and estate tax exclusion....
kiplinger.com
Is an Annuity Worth It? Tax Pros and Cons
Sep 14 2024
Knowing how an annuity might impact your tax situation can be confusing. Here are some advantages and downsides to consider....
kiplinger.com
How Making a Qualified Charitable Distribution (QCD) Can Save You Tax Money
Sep 13 2024
QCDs are a way to help great causes and those in need, but they are also a way to manage your tax exposure and avoid unpleasant surprises. The post How Making a Qualified Charitable Distribution (QCD)...
boldin.com
Want to Move to Italy? What to Consider Financially
Sep 13 2024
Once you've decided that you and Italy are compatible, you'll want to work out your tax planning, investments, retirement accounts and benefits....
kiplinger.com
Saving to Be a 401(k) Millionaire? Plan for Taxes Now
Sep 11 2024
Your tax bite in retirement could be excruciating. Here's why super savers need to get serious about protecting themselves....
kiplinger.com
Considering a 721 Exchange? Adopt a Buyer Beware Mindset
Sep 11 2024
Having a tax-smart exit strategy for your real estate investment is a great idea, but if a 721 exchange is part of your plan, here's what you need to consider....
kiplinger.com
Your First Look At 2025 Tax Rates: Projected Brackets, Standard Deductions And More
Sep 11 2024
Inflation-adjusted amounts in the tax code are expected to increase by 2.8% from the 2024 numbers—about half the increase that taxpayers saw in 2024....
forbes.com
Five December 31 Tax Deadlines for Retirees
Sep 10 2024
The end of the year will be here before you know it, so it might be a good idea to start thinking soon about what you need to do for taxes before it arrives....
kiplinger.com
How Retirement Withdrawals May Affect Your Tax Bracket
Sep 10 2024
Learn how retirement withdrawals impact your tax bracket and explore strategies to minimize tax hits on your income during retirement....
forbes.com
Tax Efficiency Mastery for Financial Success
Sep 09 2024
As you build your wealth, tax considerations are going to become more important in protecting your earnings and staying in good standing with tax authorities....
kiplinger.com
"old person" housing in a state that do not tax on retirement income?
Sep 09 2024
hello! I've entered my 50's and I need to start planning for housing...I just like to plan things and of course, I'm single, so it's good for me to plan, too. someone in a subreddit somewhere on reddi...
reddit.com
Ed Slott Explains How to Outmaneuver the Tax Trap in Retirement
Sep 09 2024
Today we're joined by Ed Slott, the expert’s expert on retirement planning, to talk about how to make the most of your retirement savings and avoid costly tax surprises. Ed explains why converti...
sites.libsyn.com
456: Retirement Tax Planning: Should You Max Out Your 401(K)?
Sep 06 2024
What is the most effective way for you to save money for retirement? While traditionally, many have turned to accumulating wealth in their 401(k), the caveat comes in the form of taxes due. In this ep...
retirewithpurpose.com
Five Considerations About Municipal Bonds if Tax Cuts Sunset
Sep 04 2024
Tax rates are set to revert to 2017 levels after 2025, so now is the time to revisit your muni strategy and plan for optimized portfolio adjustments....
kiplinger.com
VWIUX vs. FMBIX: Which Bond Fund Is Best?
Sep 04 2024
Municipal bonds offer a unique method of investing with a nice tax benefit. Let's take a look at VWIUX vs. FMBIX and see which is better. The post VWIUX vs. FMBIX: Which Bond Fund Is Best? appeared fi...
whitecoatinvestor.com
Taxes in Early Retirement
Sep 04 2024
Want a massive tax break? Retire early. Retirement income receives much better tax treatment than earned income. The post Taxes in Early Retirement appeared first on The White Coat Investor - Investin...
whitecoatinvestor.com
Gift and Estate Tax vs Capital Gains Tax: Which Is Less?
Sep 02 2024
Capital gains tax rates might be lower than the gift and estate tax rate, but how you handle your estate and whether you use a trust can make a big difference in taxes owed....
kiplinger.com
Countdown to Tax Increases
Sep 02 2024
The Trump tax cuts are set to expire at the end of next year. And when they do expire, it means nearly everyone – including you – will be paying…...
bossretirement.com
form SSA 44
Sep 01 2024
I will be retiring sept 2024. I’m looking at this Form and don’t know what year to enter as my tax year . Do I enter 2024 ? even though it won’t be reduced by that much since I&rsquo...
community.aarp.org
Want to Move to Portugal? What to Consider Financially
Aug 31 2024
Knowing what to expect when it comes to your taxes, investments, real estate, Social Security benefits and other money-related issues is critical....
kiplinger.com
Do 1031 Exchanges Make Sense for Baby Boomers?
Aug 28 2024
Here are four scenarios in which a 1031 exchange to defer capital gains taxes would be worth exploring if you're a Baby Boomer selling property....
kiplinger.com
Nothing is Certain Except Debt and Taxes
Aug 28 2024
A few weeks ago I tweeted the following, which caused a bit of controversy on Twitter/X: Hot take: Maxing out your 401(k) when you are younger is almost always the wrong choice. The extra 0.5% per yea...
ofdollarsanddata.com
Three Strategies to Cut Your Taxes in Retirement
Aug 24 2024
All that money in your tax-deferred retirement accounts? Uncle Sam is going to want his cut, so here's how to prepare for that....
kiplinger.com
Five Reasons Some Financial Planners Avoid Tax Planning
Aug 22 2024
They might not be allowed to do it at their company, but they also might not be willing to commit the time or are more focused on compensation. Here's how to make sure you're covered....
kiplinger.com
How Many Retirement ‘Tax Buckets’ Do You Have?
Aug 20 2024
Diversifying retirement account types can lead to more significant and flexible tax benefits....
kiplinger.com
Don't Wait: Make Your Year-End Money Moves Now
Aug 18 2024
Now is a great time to minimize your upcoming tax bills, get your RMDs in order and make sure your investments are on track for a prosperous new year....
kiplinger.com
Repeal the Death Tax? These Are the Taxing Trade-Offs
Aug 13 2024
Getting rid of the death tax (aka the estate tax) might sound like a great idea, but more people could pay higher taxes under the capital gains tax regime....
kiplinger.com
Traditional IRAs: Get Tax-Deferred Retirement Savings
Aug 12 2024
A traditional IRA is a powerful way to save for retirement. If you don't have a 401(k) it can be especially helpful....
kiplinger.com
Here's What's Wrong With Trump's Pledge to Repeal Taxes on Social Security Benefits
Aug 12 2024
Eliminating taxes on Social Security benefits could impact your finances. Here's what you need to know....
kiplinger.com
Estimated tax payments in retirement
Aug 09 2024
I am retiring at the end of August !!! Yeah!!! Need some more education on estimated tax payments. Two situations in the coming years. 2024: Through Aug, taxes have been deducted from my paycheck. I w...
reddit.com
Think You’ve Planned for Retirement? Beware the Tax Torpedo.
Aug 09 2024
The complicated way Social Security is taxed can catch middle-income earners by surprise....
nytimes.com
How a Roth Conversion Can Spare You From Medicare’s IRMAA and Taxes
Aug 08 2024
If you've been a good saver and face large required minimum distributions (RMDs), then you need to plan for how to head off or limit higher Medicare premiums....
kiplinger.com
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About Taxes
Retirement income can be subject to taxes depending on the specific type of retirement account or benefit you receive and your tax bracket. Here are a few examples of common types of retirement income and how they may be taxed:
1. Social Security benefits: Social Security benefits are generally taxable if you have other substantial income in addition to your benefits. The amount of tax you pay on your benefits depends on your taxable income and tax filing status.
2. Traditional Individual Retirement Account (IRA) and 401(k) withdrawals: Withdrawals from traditional IRAs and 401(k)s are generally taxed as ordinary income at your current tax rate.
3. Roth IRA withdrawals: Withdrawals from Roth IRAs are generally tax-free if you are over the age of 59 1/2 and you have held the account for at least five years.
4. Pension income: Pension income may be taxed as ordinary income or as a combination of ordinary income and a return of your contributions, depending on the specific terms of the pension plan.
It's important to be aware of the tax implications of your retirement income and to consider them as you plan for retirement. It may be helpful to consult with a tax professional or financial advisor to understand how your retirement income will be taxed.