EPISODE #071

THIS IS WHAT HAPPENS WHEN YOU ADD IRA TAX BENEFITS TO YOUR RETIREMENT PLAN

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5 Ways Your Wealth Is Under Attack book

5 WAYS YOUR WEALTH IS UNDER ATTACK

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The 19 Sources of Retirement Income: IRA Income

In this IRA tax benefits episode, John continues his series on the 19 Sources of Retirement Income, explaining how to strategically use IRA income along with other income sources in retirement.

John has lectured extensively on financial planning. He is also the author of 5 Ways Your Wealth is Under Attack and It’s Your Wealth – Keep It.”

Don’t miss John’s key points:

  • Standard IRA income is important in your plan, but it should be equal to your non-qualified income. If your qualified vs non-qualified balance is not 50/50, your plan may be inefficient.
  • Qualified plans (in this case traditional IRAs) are tax-deferred, meaning they benefit you the most if you end up in a lower tax bracket in retirement.
    • Contributions to traditional IRAs are tax-deductible. Depending on your income level, you can deduct a portion or all of your contributions.
    • Withdrawals from traditional IRAs are taxed according to your regular income tax bracket.

And more:

  • Required Minimum Distributions (RMDs) from your IRA, which now begin at age 72, could throw you into a high tax bracket.
    • That’s why it’s important to know what bracket you’re currently in, how much money you’ve already accumulated in every account, and where you will be in retirement if you change nothing about your plan.
  • Many current tax laws are going to sunset in 20205. These include the current tax brackets and the higher standard deductions. The sunsetting tax laws will also affect real estate taxes, deductions of state and local taxes, and mortgage interest deductions. When they revert, these deductions could help you offset your IRA income.

For more, listen here. Then download our 19 Sources of Retirement Income and find out more ways to increase your retirement income. You’ll also find other great resources on our website such as our Navigate Financial Pressure guide and my book, 5 Ways Your Wealth is Under Attack. If you are new to Smallwood Wealth, schedule a Wealth Curve Conversation by clicking this link.

You can also connect with us on social media, or call us at (800) 797-1000. Set up a free, no-obligation 30-minute phone call with an advisor to discuss how to get balanced qualified and non-qualified income into your plan.

Talk to a Smallwood Wealth Management Financial Advisor

No Cost, No Obligation.

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