Want to Avoid Taxes in Retirement – Try This
There’s been no shortage of thoughts and opinions regarding Donald Trump’s tax returns since the election process began, especially since his leaked return hit the mainstream media a few weeks ago. One could argue at length regarding those numbers and whether or not they paint a positive picture of Trump and his finances. However, there’s no question that Trump was able to use his losses to help offset gains in years to come.
This is just one of many tricks that the wealthy use to help reduce their taxes in retirement. There are several others that both the wealthy and the everyday average taxpayer can use to help offset their retirement tax bill. One of the most obvious is by using an employer retirement account, which helps offset taxes now and when you’re done working. In addition, you can open a Roth IRA, which is an excellent way to save after tax income. All Roth IRA withdrawals are tax-free once you’ve owned the account for five years and you are at least 59 ½ years old.
Having a health savings account is also a great way to save. The money you place in an HSA is pre-tax so you won’t get hit upfront and it’s tax-free when you withdraw it, as long as you use it for medical expenses. Given that most people experience more health problems in their retirement years than earlier in life, this is a great tax savings tip to save you money.
These are just a few of the ways to help save money on your retirement taxes, but there are several more, including using long term capital gains, your home equity and a charitable remainder trust. If you have more questions about tax savings in retirement then please contact GROCO today.
You also might like How to Save on Tax in Retirement
http://www.forbes.com/sites/financialfinesse/2016/10/09/how-to-be-like-trump-and-avoid-taxes-in-retirement/#7ee1313f5e95
Introducing the “Total Return” Trust
Introducing the “Total Return” Trust The fundamental purpose of most trusts is to create a plan of financial protection for more than one beneficiary, often beneficiaries in different generations. “All the trust income to my surviving spouse, with the balance to be divided among our children at her death” might be used in a marital…
Making Tax-wise Investments
Making Tax-wise Investments Tax considerations are not, and should never be, the be-all and end-all of investment decisions. The choice of assets in which to invest, and the way in which you apportion your portfolio among them, almost certainly will prove to be far more important to your ultimate results than the tax rate that…
Reducing Risk With a Diversified Portfolio
Reducing Risk With a Diversified Portfolio Have you been worried about the stock market’s recent volatility? You’re not alone. The stock market in March was a roller-coaster ride that served as a reminder to investors that the market’s ups and downs can be a little dizzying. But a volatile market should not leave you feeling…
Are You Defining Items in QuickBooks Correctly?
[vc_row][vc_column][vc_column_text] Create item records in QuickBooks carefully, and QuickBooks will return the favor by running useful, accurate reports. Figure 1: Clearly-defined items result in precise reports. Obviously, you’re using QuickBooks because you buy and/or sell products and/or services. You want to know at least weekly — if not daily — what’s selling and what’s…