Many retirees are facing a tax time bomb with their retirement accounts.
A large number of clients we work with have done a stellar job at investing money in their retirement accounts at their work place. They made wise investment choices and with the general upward trend of the markets over 40 years, are looking at a 6-figure nest egg. More than they need, or want to spend.
Converting Taxable Retirement Assets to Tax Free
Joe and Vickie came to us in good shape as far as their retirement assets and secure monthly retirement check were concerned. But they knew they had a problem. They had no need or want to spend most of their retirement nest egg.
Joe had been a public school teacher for over 30 years and his pension was almost as large as what he earned teaching. He and Vickie were also collecting Social Security benefits and their total monthly secure income was already going to be far more than both their needs and wants.
Joe had regularly contributed to his 403b and Vickie her 401k. At their RMD age, they were going to be forced to take withdrawals they didn’t need, or face a penalty. These government forced distribution were going to raise Joe and Vickie two tax brackets.
We were able to devise a plan that would allow Joe and Vickie to convert these taxable retirement assets to non-taxable while paying taxes on a schedule they chose, not the government.
- Estate Planning
- Joe and Vickie G.
- 10/14/2021
