Social Security is a core element of almost all retirement plans. To maximize your Social Security retirement income, you need to minimze your Social Security taxation.
Entering retirement with a mistaken assumption as to your marginal tax rates can be an expensive mistake. Because of the complicated taxation of Social Security benefits; your real marginal tax rate could be much higher than expected.
Many people have income from multiple sources: IRA Distributions, Social Security, Taxable Savings and Investments, k-1 Income, etc. How these income sources are structured can make a big difference in your effective tax rate.
Just when we had it figured out, Congress changes the rules. The SECURE Act, passed in December of last year, made significant changes to RMDs that you need to be aware of.
Once you are required to take distributions from your tax deferred savings, the IRS has no patience – they want these distributions to start and they will hit your hard if you don’t comply.
A Roth conversion isn’t a one-time transaction; it will affect your taxes now and for the rest of your life. You need to consider all of the variable.