Weekend Reading: 4 Retirement Planning Moves That Can Yield Big Tax Savings

This article appears as part of Casey Weade's Weekend Reading for Retirees series. Every Friday, Casey highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Get on the list here.
Weekend reading tax saving strategies Weekend reading tax saving strategies
Weekend Reading

In our Retire With Purpose framework, we incorporate tax planning throughout all areas of your retirement plan. Many individuals underestimate the impact Uncle Sam can have on your decades’ worth of savings, so to proactively protect your dollars, have a strategy in place; plus, keep some of these principles in mind:


📌 Mind the “rule of 55”: This rule permits individuals who leave their employer at age 55 or older to withdraw funds from their 401(k) or 403(b) penalty-free, but not tax-free.

📌 Consider 401(k)-to-HSA transfers: For those who leverage the “rule of 55”, your 401(k) distribution could then be deposited into an HSA in the same tax year to reap net zero tax benefits.

📌 Take advantage of the zero percent capital gains tax bracket: Depending on your total personal income, whether filing single or jointly, you could leverage a lower-income window in order to “harvest a significant amount of capital gains while paying very little in taxes.”

📌 Use Roth conversions to reduce capital gains taxes: Considering portfolio losses experienced in 2022 combined with today’s low tax rate environment, converting IRA assets to a Roth IRA can also help avoid capital gains taxes.

Don’t stress; simplify: You can make BIG gains with little moves. Working with a professional can help ensure you don’t have nickels falling through the cracks.