Absolute Retirement Solutions

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Live Well. Retire with Confidence.

ABSOLUTE RETIREMENT SOLUTIONS

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Live Well. Retire with Confidence.

ABSOLUTE RETIREMENT SOLUTIONS

Retirement Tax Strategies Kansas City Metro Area

When you retire and stop getting a regular paycheck, every dollar counts. That’s why many retirees are looking for tax minimization strategies to stretch their retirement savings as far as they can go. Timing is key; when and how you choose to withdraw from retirement accounts like 401(k)s and Roth accounts will impact your taxes in a variety of ways. The tax rate on 401(k) withdrawals depends on your age when you decide to start taking them out. The knowledgeable agents at Absolute Retirement Solutions in Overland Park, KS offer assistance with choosing tax efficient retirement withdrawal strategies. We’ll learn all we can about your unique financial situation as well as your needs and goals for retirement. Your best course of action will depend largely on how you plan to spend your money. We offer the guidance you need to choose personalized retirement tax strategies; call today in order to schedule a private consultation.

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Tax Minimization Strategies

Most retirees have multiple sources of income. Retirement accounts, Social Security, investments, savings, annuities, rental properties, part-time jobs, and more can work together to fund retirement. However, each source has to be monitored carefully in order to minimize taxes. One of the simplest retirement tax strategies is to keep your expenses low so that you don’t have to withdraw as much from your retirement accounts. This helps keep you in a lower tax bracket and allows you to take advantage of more tax breaks.

Traditional tax minimization strategies often suggest that you should start taking withdrawals from taxable assets, such as savings and brokerage accounts, first. Then, tax-deferred accounts like traditional 401(k)s and IRAs. Finally, tax-free Roth accounts are the last you tap into. This approach can be effective in some situations, but for many people, there may be other, potentially better tax minimization strategies for withdrawals. For some, it may be more effective to take out proportional withdrawals from all accounts, annually.

 

Tax Rate On 401(k) Withdrawals

There are a number of retirement tax strategies regarding the use of money in 401(k) accounts. Withdrawals from 401(k) accounts are always taxed as ordinary income unless they are Roth 401(k)s. One thing you should generally avoid doing is pulling large lump-sums from your 401(k) because it could have a negative tax consequence. It’s also important to know that 401(k) withdrawals taken out before age 59½ are subject to an additional 10% federal tax penalty. We can help you decide when and how much to take in order to minimize the tax rate on 401(k) withdrawals. With direction from our engaged and experienced agents, you can give less of your retirement savings up to the government. That means more to spend or pass down to your beneficiaries. Are you not sure what to do with your 401(k) or how to reduce the tax rate on 401(k) withdrawals? Give us a call today.

 

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Tax Efficient Retirement Withdrawal Strategies

It can be complex to decide when to start taking distributions, from which accounts, and in what amounts. Many retirees aren’t getting as much out of their savings as they could be if they aren’t using tax efficient retirement withdrawal strategies. Fortunately, you don’t have to go it alone. Absolute Financial Solutions can help break down your tax situation and provide retirement tax strategies designed to help you correctly manage your withdrawals. Start getting the most out of your retirement savings. Contact us today to schedule an appointment with one of our agents in the Kansas City Metro Area.

There are many retirement tax strategies and there’s no magic solution that will work for everyone. Get information and personalized guidance from the professionals at Absolute Retirement Solutions.

Live Well. Retire with Confidence.

ABSOLUTE RETIREMENT SOLUTIONS

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