In this week’s Hidden Wealth Review, I teach that, over the course of this Labor Day week, many people have shared how they are laboring over the uncertainty of taxes. Especially taxes in retirement. Most of those with whom I’ve spoken are concerned about the tax effect of the Required Minimum Distributions that they will be forced to take beginning at age 70.5.
Now is the time to address your tax issues, before tax rates go up. Late last fall, the Senate passed a bill requiring a non-spouse inherited IRA to be liquidated within five years. Many non-spousal inheritors (read that as your children) are not prepared for this.
Reporting in TIME Magazine, Nash Jenkins shares that a major sticking point right now is how the Trump administration plans to pay for tax reform. Senate Republicans intend to approve tax reform cuts using a process called reconciliation. Bills passed under reconciliation cannot increase the deficit after 10 years. That means Congress will have to find a way to make up for any Trump tax cuts. To do this, Congress will have to directly and indirectly increase taxes.
Prime examples of this are the taxing of up to 85% of your Social Security income and raising premiums for Medicare Parts B & D. So, as you take distributions from your IRAs or 401(k)s you become Uncle Sam’s favorite type of citizen, the perfect tax payer.
There are also rumors that mortgage interest deductions might be decreased or even eliminated. Whatever happens, it ultimately translates to increased taxes for you and me.
This is the optimal time to determine how you can save the most tax for your retirement. Get your plan in action before the end of the year (which is fast approaching). Now is the time to learn what you can do and still save taxes for 2017 !
This coming Tuesday, I’m teaching my Tax-Free Retirement Webinar. This no-cost, no-obligation educational event will teach you how to protect your retirement from taxes and avoid becoming the perfect taxpayer. To register, go to www.RetirementProtected.com, enter the required information and submit your registration. Once you’ve registered, you’ll receive an email containing a personal link to join Tuesday’s event.
-Spouses are encouraged to attend this event together-
When you register and attend the webinar, you’ll receive an e-copy of my latest book, The Baby Boomer Retirement Breakthrough. This book teaches you the top five retirement risks and the unique solutions you can use to avoid them.
Here’s to your Hidden Wealth,