Taxes
Showing 50 results of 564
How To Slash Taxes On Employer Stock In A 401(k) Plan
Oct 26 2024
There are significant tax-reduction opportunities available when employer stock is held in a 401(k) plan. But you have to meet all the qualifications....
forbes.com
Inheritance, Simplified: How Assets Are Passed Down
Oct 25 2024
Here's a breakdown of the logistics, including probate, taxes and who gets what if you die without a will....
kiplinger.com
What’s the New 2025 Estate Tax Exemption?
Oct 23 2024
The IRS just increased the exemption as we enter what could be the final year of TCJA....
kiplinger.com
This Election, Your Financial Plans Should Focus on Taxes
Oct 23 2024
Don't let election drama tempt you into changing the makeup of your portfolio. The sensible move right now is to work out how to lower your future tax burden....
kiplinger.com
Question on calculating effective tax rate in retirement...
Oct 20 2024
I am wondering if there is a decent calculator online or other advice on trying to figure out my taxes in retirement so I have a better idea of what gross amount I need to draw each month. My income w...
reddit.com
Three Creative Ways to Lower Your Retirement Taxes
Oct 18 2024
You can apply key minimalism concepts for potential tax savings. Here’s how....
kiplinger.com
How IRAs Can Help Retirees Reduce Or Avoid Estimated Tax Penalties
Oct 18 2024
The number of taxpayers hit with penalties for underpaying estimated taxes has increased. But retirees can use a traditional IRA to help avoid the penalties....
forbes.com
Five Ways the Election Could Change Your Retirement
Oct 18 2024
From taxes to Social Security and beyond, the election could change your retirement depending on which candidate wins. Who takes the House and Senate also matters....
kiplinger.com
Question about tax loss harvesting
Oct 18 2024
I have a non-retirement investment account where I have invested in a particular stock and has suffered losses. I would like to claim those losses this year to the maximum amount of $3000. I also own ...
reddit.com
Three Tax Reasons to Retire in Panama
Oct 17 2024
With low property taxes and tax-free foreign income, this tropical paradise could make you rethink retirement as a U.S. expat....
kiplinger.com
Trump Aims to Ban Taxes on Social Security. Here are the Pros and Cons.
Oct 15 2024
Does the bad outweigh the good? Here's what could happen if your Social Security income goes untaxed....
kiplinger.com
When Does a Nest Egg Become a Ticking Tax Bomb?
Oct 13 2024
Retirement savers with big bucks in traditional IRAs and pretax 401(k)s could face huge tax bills when RMDs kick in. One potential solution? A Roth 401(k)....
kiplinger.com
Trump vs. Harris: How Winner May Impact Taxes, National Debt
Oct 13 2024
Budget watchdogs each release analysis of candidates’ professed tax and spending plans while…...
401kspecialistmag.com
You're 60 Years Old With $1 Million Saved: Can You Retire?
Oct 11 2024
The answer depends on several factors. The key is to create a plan that combines all aspects of retirement — income, taxes, health care and legacy planning....
kiplinger.com
Silver Lining? Four Tax Benefits of a Lower 2025 Social Security Increase
Oct 11 2024
Could less mean more, when it comes to taxes and the Social Security COLA for 2025?...
kiplinger.com
Social Security Tax Limit Jumps 4.4% for 2025
Oct 10 2024
The Social Security Administration has announced significant changes affecting millions as we approach a new year....
kiplinger.com
433: Direct Indexing and the Evolution of Investment Tools
Oct 10 2024
Investment strategies have evolved over the past 25 years, from mutual funds to ETFs, and now to direct indexing, a strategy favored by the ultra-wealthy due to its tax advantages. Direct Indexing als...
retirewithpurpose.com
Spend RMDs, or Reduce Reduce Distributions and Taxes With Roth Conversions? - 498
Oct 08 2024
Hawkeye and Elle are age 61 and in the 32% tax bracket. How should they get money into their Roth accounts for tax-free retirement income? Clark and Ellen are 69 and 68, expenses will pretty much be c...
purefinancial.com
No Retirement Advice or Recommendations, Just Spitballing - 453
Oct 08 2024
Can Jessie and Becky in Iowa retire now at age 52? Should Robert and his wife file their taxes separately, to pay less tax on their required minimum distributions? Can Joe and Al validate Mike in Minn...
purefinancial.com
The 20 States Real Estate Investors Should Avoid Unless They Love Filing Tax Returns
Oct 04 2024
It's not always easy determining how much you owe in state taxes for passive investments. Here's a guide that will help you figure it out. The post The 20 States Real Estate Investors Should Avoid Unl...
whitecoatinvestor.com
When Should Retirees Consider a Donor-Advised Fund?
Oct 03 2024
Charitable giving in retirement isn't right for everybody. But in certain situations, a tax-efficient donor-advised fund (DAF) may be well worth considering....
kiplinger.com
This Trust Strategy Can Reduce Your Taxes Big-Time
Oct 02 2024
Upstream basis planning can help younger wealthy people pay less taxes on highly appreciated assets if they appoint an aging relative as a trust beneficiary....
kiplinger.com
Tax-Savvy In-Plan Roth Conversions and Inherited IRA Withdrawals - 497
Oct 01 2024
Should David in Ohio use 457 funds to do an in-plan Roth conversion in his 403(b) plan, and should he hire a financial advisor? Chris in DC needs a retirement and Roth conversion spitball analysis, an...
purefinancial.com
Pre-Retirement Tax Planning: Things to Know to Save Big in Retirement
Oct 01 2024
Retirement tax planning should begin well before retirement. Listener Jodie, with over $2 million in assets in various types of accounts, is concerned about the high tax bracket she anticipates she be...
buzzsprout.com
Social Security Demystified: Calculating Taxation, Provisional Income, and the Tax Torpedo
Oct 01 2024
Listener Michael asks about how Social Security is taxed, the rationale behind the 50% and 85% tax thresholds, and the implications of these taxes on Social Security and IRA withdrawals. James respond...
buzzsprout.com
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
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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.