How to Plan for Taxes in Retirement 2024

Taxes don’t go away in retirement. You’ll need to make quarterly payments or set up automatic withholdings from retirement account distributions. How much should you withhold and how will it change throughout your retirement? In this free webinar, we'll show you how the tax code applies to retirees. We’ll also cover strategies that can reduce your lifetime tax liability.
 
We'll look at practical examples applying the tax code to these three phases:
·        While you are still contributing to savings
·        When you are taking withdrawals
·        When allocating and rebalancing investments

Your class instructor, Dana Anspach, will illustrate taxes with real life examples. We look forward showing you ways to plan ahead for taxes and potentially reduce your tax liability.

0:00 - Intro
3:51 - Basics
23:51 - Opportunity Years
1:00:08 - Strategies
1:20:58 - Q & A

Two clarifications we’d like to make.

1. How to avoid underpayment penalty when doing a year-end Roth conversion.
An attendee asked a question about how to avoid an underpayment penalty tax when doing a Roth conversion year-end. The answer is, assuming that without the Roth conversion, they would not have already incurred a penalty, then can pay enough in their 1/15 quarterly payment to avoid the underpayment penalty, using the annualized method (instead of the equal installment method) to calculate the safe harbor quarterly payments.
How to pay all taxes at year-end.

2. We discussed a strategy of withholding all taxes from an IRA near year-end in an amount sufficient to cover the entire year’s tax liability (and avoid any underpayment penalty.) This withholding is itself a taxable distribution, so you need to account for that in calculating the total taxable income and tax owed for the year. You would not do this if you are under age 59 ½ as this distribution would also incur an early withdrawal penalty tax.

DISCLOSURES
This presentation contains general information that is not suitable for everyone and was prepared for informational purposes only. Nothing contained herein should be construed as a solicitation to buy or sell any security or as an offer to provide investment advice.

Sensible Money, LLC (“SM” or "the Firm") is a registered investment adviser. Registration is a legal requirement – it does not imply approval or endorsement. For additional information about SM, including its services and fees, you can request a copy of SM’s disclosure brochure by emailing us at [email protected] or visit www.advisorinfo.sec.gov.

Any charts in the presentation are not meant to show the performance of SM strategies or to imply the performance of any model portfolios. Any charts or examples are meant to show the Firm’s belief in sticking to a plan over time, but there is no guarantee that you will have the same or positive results. Any results portrayed in these cases or examples are not representative of all of SM’s clients or the clients’ experiences. No portion of this presentation should be interpreted as a testimonial or endorsement of SM’s investment advisory services.

Past performance is not a guarantee of future results. When investing, depending on your timing, you could lose money. There is no guarantee that the prevailing market and economic conditions during the time frames in the graphs will continue, and performance may be negatively impacted by a shift in such conditions.