Tax Planning Archives

Will You Have Tax-Advantaged Buckets in Retirement?

You’ll likely have several sources of income in retirement that can be taxed, such as IRA distributions and Social Security benefits. But, do you have any after-tax “buckets” that you can use strategically in retirement to help reduce your tax bill? There may be a few options available to you, so know how they work. How is a Roth IRA Different from a Traditional IRA? Many people contribute pre-tax dollars to a traditional IRA during their [...]

Rebecca Mack2022-07-08T18:32:56+00:00July 4, 2022|Financial Planning, Retirement Income, Tax Planning, Tax Strategies, Taxes|

Three Unexpected Taxes in Retirement

When we think of major retirement expenses, we often consider housing, healthcare, and that trip of a lifetime we’ve been dreaming about for years. But, we often fail to consider what could potentially be our biggest expense – taxes. Many of your sources of income in retirement are taxable, so don’t overlook these three unexpected taxes in retirement. Tax on Your Social Security Benefit Although you’ve paid into Social Security your entire working life, your benefit [...]

Rebecca Mack2022-06-10T15:12:17+00:00June 10, 2022|Financial Planning, Retirement Income, Social Security, Tax Planning|

Estimating Your Tax Burden in Retirement

Taxes could be one of your biggest expenses in retirement. But once you have an estimate for your tax burden in retirement, you can consider ways to minimize it. The first step towards creating a tax minimization strategy in retirement is looking at how your different sources of income will be taxed. Pensions If you have a private pension, your pensions payments could be taxed at ordinary income rates. They could also be subject to state [...]

Rebecca Mack2022-04-28T19:15:12+00:00April 28, 2022|Tax Planning, Tax Strategies, Taxes|

Tax Day Will Be Here Before You Know It

Tax Day is April 18th this year, due to the Emancipation Day holiday in Washington D.C. on the 15th. This is a good time of year to review your finances and think about your long-term tax strategy. Tax Day will be here before you know it, so know these important tax terms and start thinking about how you’ll work to lower your tax bill. Tax Credits A tax credit is a dollar-for-dollar benefit. It’s an amount [...]

Rebecca Mack2022-03-29T21:11:17+00:00March 29, 2022|Tax Planning, Taxes|

Don’t Forget About Your Tax Bill

Before you know it, Tax Day will be here, so it’s best to start getting ready now. Beyond your tax bill this year, don’t forget about your tax bill in the future, even in retirement. Taxes don’t stop when you stop receiving a paycheck, and they could be one of your biggest expenses in retirement. You should understand how different types of income are taxed and create a plan that works to lower your taxes throughout [...]

Rebecca Mack2022-03-22T20:12:29+00:00March 22, 2022|Tax Planning, Taxes|

3 Things About Your Taxes That May Have Changed

Here come the holidays and everything that goes with them – traveling, cooking, buying gifts, and of course, spending time with the people we love. Even though it’s a busy time of year when finances can end up taking a back seat to decorating and wrapping presents, it’s important to take the time to review where 2021 has left you and prepare for 2022. Here are three things about your taxes that may have changed. The [...]

Rebecca Mack2021-12-16T01:21:32+00:00December 16, 2021|Tax Planning, Taxes|

Plan for the Tax Rates of the Future

Retirees may no longer receive taxable income from an employer, but they will likely receive income from other sources which can be taxed. And while we know what the tax rates are now, we don’t know what they’ll be in 10 or 20 years – or even one year from now. This is why it's important to plan for the tax rates of the future when it comes to taxes. Now vs. Tomorrow Right now, many [...]

Rebecca Mack2021-11-15T16:21:01+00:00November 15, 2021|Tax Planning, Taxes|

How a Financial Advisor Can Help You Pursue Tax-Smart Strategies

They say there’s no such thing as a free lunch, but what about a tax-deductible lunch? While many of your income sources can be taxed, there are strategies to help minimize your overall tax burden before and in retirement. An advantage of going to one professional for all of your financial planning needs is that everything from investment strategies to estate planning works together in one overall plan. Here’s how a financial advisor can help you [...]

Rebecca Mack2021-08-13T17:46:23+00:00August 13, 2021|Financial Planning, Tax Planning, Tax Strategies|

Prepare for Taxes On Your Retirement Accounts

The Biden administration has already spent $1.9 trillion on COVID relief and has plans to spend trillions more on infrastructure projects, Medicaid expansion, education, and climate investments. In order to fund these projects, the administration has proposed several tax-increasing measures on corporations and individuals. You may think you won’t have to worry as much about your tax burden in retirement, but you could be wrong. You may need to prepare for taxes on your retirement accounts. [...]

lonebeacon2021-05-04T23:37:45+00:00May 4, 2021|Retirement Income, Retirement Planning, Tax Planning, Taxes|

4 Types of Retirement Income and How They’re Taxed

Taxes don’t stop when you stop receiving a paycheck. If you have multiple sources of income in retirement, your tax burden could be substantial. By understanding how different types of income are taxed, you can develop income planning strategies that work to lower your taxes throughout retirement. Start with these 4 types of retirement income and how they’re taxed. Investments held for over a year are taxed at preferential rates. Investments that are held for one [...]

lonebeacon2021-04-09T16:29:19+00:00April 9, 2021|Retirement Income, Tax Planning|