Tax-Efficient Ways to Increase Retirement Income
Today’s chosen theme: Tax-Efficient Ways to Increase Retirement Income. Welcome to a friendly space where we turn smart tax planning into more reliable, spendable income in retirement. Join us, share your questions, and subscribe for weekly, practical strategies you can use.
Smart Withdrawal Sequencing for Bigger After-Tax Income
Beginning with taxable accounts can let long-term gains benefit from favorable rates while preserving tax-deferred growth. Each year, revisit your plan to reflect markets, spending changes, and updated tax rules. Comment with your order today, and we’ll suggest refinements.
Strategic Roth Conversions Before RMDs
Calculate how much room remains before your next bracket and convert only up to that ceiling. This bracket-filling approach can create future tax-free income and reduce later surprises. Post your bracket target, and we’ll discuss modeling tools that keep you on track.
Strategic Roth Conversions Before RMDs
Large conversions can raise your Medicare premiums two years later. Plan conversions to stay under key income thresholds, or intentionally step over once with multi-year benefits. Tell us your current MAGI estimate, and we’ll explore a conversion cadence that respects IRMAA cliffs.
Strategic Roth Conversions Before RMDs
Building Roth balances provides tax-free dollars for big goals: home projects, travel, or helping family—without boosting taxable income. One reader used a five-year conversion ladder to fund grandchild tuition completely tax-free. What dream would your future Roth dollars support?
Asset Location: Put the Right Investments in the Right Accounts
Hold bond funds and high-turnover strategies inside IRAs or 401(k)s to avoid annual taxation at ordinary rates. Keep broad index equity funds in taxable accounts for qualified dividends and long-term gains. Share your current placement, and we’ll suggest simple, tax-savvy adjustments.
Delay Strategically to Open Low-Tax Windows
Delaying can raise your monthly check while freeing early retirement years for low-tax Roth conversions. Those windows often vanish once Social Security and RMDs begin. Share your tentative claim age, and we’ll discuss how to pair it with bracket-filling conversions.
Bridge Income with Cash, Taxable Accounts, or Part-Time Work
Use cash reserves or taxable accounts to cover spending while converting IRAs at favorable rates. Some retirees add light consulting to smooth cash flow. Tell us your bridge plan, and we’ll explore a mix that protects flexibility and keeps taxes comfortably predictable.
A Couple’s Story: Coordinating Benefits and Brackets
Maya delayed to boost the survivor benefit, while Luis claimed earlier for essentials. They filled 22% brackets with conversions, avoiding future spikes. Their net spending rose without stress. What combination could balance your taxes, security, and peace of mind?
Charitable Giving: QCDs, Bunching, and Appreciated Shares
After reaching RMD age, direct IRA dollars to qualified charities so the amount bypasses your adjusted gross income and counts toward RMDs. Readers report cleaner tax returns and lower IRMAA. Tell us your giving rhythm, and we’ll map a QCD plan around it.
Leverage the HSA Triple Tax Advantage
Contributions can be pretax, growth can be tax-free, and qualified withdrawals are tax-free. After 65, non-medical withdrawals are taxed like IRA income. Many retirees invest HSA funds and reimburse later. Tell us your HSA approach, and we’ll help optimize it.
Use Saved Receipts to Reimburse Years Later
Keep meticulous records of eligible expenses, then reimburse yourself in a future year tax-free, creating income on demand. One subscriber used this tactic to fund a dream trip without touching taxable income. How could delayed reimbursements boost your flexibility?
Plan for Medicare Premiums and Big Medical Years
HSAs can pay Medicare Part B, Part D, and Advantage premiums, but not Medigap. Consider scheduling elective procedures in one year to potentially maximize itemized medical deductions. Share your upcoming healthcare costs, and we’ll coordinate a tax-aware payment timeline.
