TAX PLANNING
Clearwater and Tampa Bay Florida

Going beyond tax preparation to make sure you are minimizing unnecessary tax burdens

There is a big difference between preparing your taxes and planning your taxes. We focus on tax planning strategies in retirement.

Perhaps the most impactful piece of retirement planning is determining your current and future tax liability and developing strategies to minimize the amount of taxes you pay in retirement. We strive to implement a sound, well-thought-out financial strategy to minimize year-to-year tax liabilities and provide the opportunity to maintain your current standard of living throughout retirement.

Tax Planning Strategies

QUESTIONS AND PROBLEMS WE SOLVE:

What sort of tax obligations will I face in retirement?

Taxes can have a big impact on retirement. Many assume that when they stop working, taxes will be reduced or even disappear. However, the reality is that taxation continues into retirement and must be factored into retirement planning. A surprise to many retirees is that Social Security may be taxable. In fact, up to 85% of Social Security benefits may be subject to income tax. Another major tax situation occurs when retirees are forced to take RMDs (Required Minimum Distributions) from their IRAs at age 70.5.

How does Social Security impact my taxes?

Receiving Social Security benefits may impact your tax burden. Many people are surprised to find out that Social Security benefits themselves may be subject to taxes. Social Security benefits impact your overall taxable income amount and therefore may impact other financial aspects of your situation such as whether or not you qualify for a federal subsidy for health insurance. It is therefore important to consider taxes when determining when to take Social Security and when building a retirement income plan.

Should I convert to a ROTH IRA?

Many people hear about the concept of a ROTH IRA and immediately want to get involved. In particular, the tax advantages of the ROTH plan are most appealing. Sometimes converting a Traditional IRA to a ROTH IRA makes financial sense. This is a situation we see as people enter retirement and we use software to help make that decision. When it comes to an important decision with major tax implications like this, we involved our CPA partners to make sure it is done properly.

Where should I generate income from to minimize tax burdens?

Retirement income planning is not only about generating the income you need in retirement, but also about reducing tax liabilities. There are different strategies that can be employed to generate income in a tax advantaged way. When developing a retirement income plan, tax planning (as opposed to tax preparation) is an essential aspect. Different investment tools, tax qualifications, and timing play an important role in planning.

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