Tax

Tax planning is just as essential to any comprehensive retirement plan as income planning, legacy planning, etc., and it’s also why our team focuses on tax-minimization strategies as part of our Retire With Purpose™ Framework.

A share of your earnings has always gone to Uncle Sam, and unfortunately, you’ll find the same holds true when it comes to your retirement income.

With new tax and retirement legislation looming ahead, it’s more important than ever to be proactive when it comes to your tax efficiency.

Presently, taxpayers have a roughly $12 million estate exemption per person. As such, a step-up in basis strategy can be utilized to help minimize capital gains taxes upon the sale of those appreciated assets.

Some might view tax season as a once-a-year event where Uncle Sam takes an unpredictable slice of your hard-earned savings. However, in the grand scheme of your retirement, tax planning should occur throughout the year, every year.

Taxes can pose one of the biggest threats to your lifelong savings, especially if you’re not apprised of exactly how and when Uncle Sam claims his cuts.

When it comes to deciding whether you should claim Social Security benefits at Full Retirement Age (FRA), or delay and receive credit, several factors come into play which you should be aware of.

A primary part of navigating the complicated process of tax planning includes not only considering the source of your income, but also understanding how it can affect the dues you owe Uncle Sam.

While tax planning for the greatest long-term efficiency in retirement, be wary of increasing taxable income. Upon doing so, there are two major situations you could find yourself in, both of which are discussed by past Retire With Purpose podcast guest, Wade Pfau, here.

All eyes are on the Build Better Act as it works its way through Congress. While nothing has been set in stone yet, it’s important to consider how the tax implications of this bill might affect your retirement plan in the event they make it through the legislative process.

The most recent proposal of the Build Back Better Plan submitted on November 19 now eliminates both the regular backdoor Roth and mega-backdoor Roth tax strategies beginning in 2022 for everyone, regardless of income.

A New Year is upon us, but before 2021 comes to a close, there are some ways to set yourself up for financial success into 2022 and beyond, especially in the realm of tax planning.