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
New Jersey Governor Says Enough is Enough on Taxing the Wealthy
New Jersey Governor Says Enough is Enough on Taxing the Wealthy It seems that no tax is a bad tax when it comes to the “left” side of the government. It’s a well-known fact that the wealthiest Americans pay the largest portion of the country’s taxes. However, there are some government leaders that lean “right”…
Clinton’s Using Careful Strategies to Avoid Tax They Support
Clinton’s Using Careful Strategies to Avoid Tax They Support Have you ever wondered what wealthy democrats do when tax laws they support and vote for come back to apply to them? Although people typically associate being wealthy with republicans, there are plenty of rich democrats in the nations’ capitol as well. So just what do…
California Going After Tax-Evaders
We have discussed the federal government’s efforts to track down tax-evaders many times before, but the IRS isn’t the only tax agency looking to crack down on those who don’t pay their fair share of taxes. The California Franchise Tax Board is in the middle of a five-and-a-half-year effort to automatically find and identify noncompliant…
The IRS is Not a Bully, No.4
The IRS is Not a Bully You can poke a bully in the nose. Palo Alto, CA. July 4, 2014 – This is the Fourth installment of “The IRS is Not a Bully” series, identifying taxpayer concerns and the difficult position in which Congress puts the IRS. Namely, applying ever increasing pressure to operate in…