Our client couple are in their mid-sixties. The husband, Jim was looking to retire in early 2021 and his wife, Jill wanted to work another three years. Like many Baby Boomers, they had saved their retirement money into tax-deferred accounts such as 401(k)s and IRAs.
Jim and Jill were concerned because all of their retirement income was coming from money that had not been taxed yet. They wanted to know what that was going to look like when they started to withdraw money from these accounts. The situation they are facing is very typical of what we see in Baby Boomer couples who have saved money in a 401(k) or IRA.
Jim and Jill’s future Required Minimum Distributions (RMDs) from their tax-deferred accounts will be so large that it will be as if their income never changed when they retired. Their earned income will be replaced by income from their assets, placing them in a higher marginal tax bracket. This is a considerable risk due to the deficit-building effect of the recently added stimulus, the size of the national debt and other out-of-control government spending. Keep in mind that taxes are going to rise once Donald Trump is out of office and the Tax Cuts and Jobs Act expires. Because of this, Jim and Jill realized they were playing roulette with the future tax rate risk.
Jim and Jill learned how to untax their money using common sense, proven solutions with track records of measurable results. They took advantage of the crucial tax savings timing in 2020. All told, they were able to sidestep $24,000 a year in unnecessary taxes and what I call “government gotcha’ grabs.” This included avoiding a Medicare surplus premium of over $318 a month, each. This premium would have been deducted from each of their Social Security checks and $855 of their Social Security would have been subjected to income tax! All of this was unnecessary and will now be avoided.
They have two grown sons. Not only did Jim and Jill want to live more, they wanted to leave more. This means not leaving their children with a major tax burden in the form of a forced liquidation of their IRAs and 401(k)s under the SECURE Act. Their sons’ inheritance will now be 100% tax-free! Before they met with us, Jim and Jill were the very definition of the perfect government taxpayers. Now, they’re traveling on a different road and you can too. Learn common sense retirement solutions where you’re in control. Believe in better.
You’ve worked hard for your money. Learn how your money can work to protect you from unnecessary taxes. Go to TaxesSaved.com and request a Saving Tax Optimization Plan (S.T.O.P.) Analysis. Don’t worry, there’s no sales pitch and no fine print. The S.T.O.P. Analysis teaches you the tax risk road you’re traveling and how to reroute yourself to remove the unnecessary taxes that you are going to face.
When you request your S.T.O.P. Analysis, you will receive my guide, Retirement and Your Taxes, How to Get the IRS Out of Your IRAs and Remove Uncle Sam from Your Children’s Inheritance. This guide covers the Tax Cuts and Jobs Act’s impact on you and your retirement as well as the effect of the SECURE Act on your children and grandchildren’s inheritance.
When requesting your S.T.O.P. Analysis, please be specific as to the exact day and time that you wish to be contacted. Please be sure to give your best telephone number where you can be reached on the specific day between 10:00 AM and 6:00 PM Eastern time. Please be specific and please don’t list “anytime” as your desired time to be reached.
Let me leave you with one final thought. You’ve worked hard for your money, let us teach you how to legally, ethically and morally avoid unnecessary taxes that rob you and your children of that hard-earned money. Let’s get to work!
