How can retirees avoid housing traps

Unless you ave specifically created a trust to receive the funds, it is normally advantageous to name a person s as your beneficiary. If you are divorced or married, update these forms, send them to the financial institution that holds the account, and ask them to acknowledge that they have received the request.

Many people aspire to retire early, but it requires careful planning to properly execute. HSAs may be used to cover qualified medical expenses during early retirement before Medicare and government assistance programs kick into effect.

Taxes play an important role in retirement and tax strategies should be carefully considered when planning for retirement. In particular, you should be aware of these three tax traps to avoid paying significant tax penalties without a good reason. Please enter your username or email address. You will receive a link to create a new password via email. A failure to plan for taxes during retirement can have a large effect on your after-tax income. Click Here.

Piggy bank on blank screen. First Name. Join Our Newsletter! Your information will never be shared. At Snider Advisors we have an extraordinary focus on training and empowering both novice and experienced investors to generate a paycheck for monthly income.

We promote self-management of your funds to avoid costly management fees, for a more secure and prosperous retirement. Premium Content Locked! Get Instant Access. Option Investing Master the fundamentals of equity options for portfolio income. Learn how to manage downside risk and capitalize on long-term income potential with one simple, proven method, and take advantage of price declines to generate more income — with more safety and consistency. Get Started! Avoiding pain and pursuing comfort is the healthy, innate, human response to situations.

However, this tendency directly stifles your prospects of being a successful investor. Learn how to end the endless cycle of investment loses. You might be leaving them with much less after-tax wealth than you believe. Take a look at how these Stealth Taxes will affect you and your loved ones over the years.

For decades, the government encouraged people to put money away for retirement by providing generous tax incentives. Now, the federal government plans to recover those tax breaks, plus interest, as people go through retirement. Click here for the breaking story. His advice has helped tens of thousands of people for more than a decade.

All rights reserved. Topics: Taxes in Retirement. By Bob Carlson. Related Topics. October Congress Comes for your Retirement Money. A devastating new law has just been enacted, with serious consequences for anyone holding an IRA, pension, or k.

Quick Links. Articles Trending Now. Should you put your IRA in a Trust? Log In. Remember My Login. Below-the-line deductions, such as charitable donations, will not help.

For this reason, thoughtfully using qualified charitable distributions can produce significant premium savings. Listen to free podcasts to get the info you need to solve business challenges! He will still satisfy his RMD, meet his charitable goals, and maintain an AGI low enough to benefit from the lower premium. While short-term capital gains are taxed at regular income rates, long-term capital gains are based on total income. This means that an increase to other income e.

While the IRA distribution will be subject to their marginal income tax rates, it also will impact the taxation of their capital gains. While this is not an exhaustive list, the above is meant to illustrate why it is so important to have clients speak with tax advisors about unintended consequences before deciding to convert a Roth, time additional income or sell an asset.

The best-laid plans to manage taxes may be undermined if a client fails to consider how the added income can affect other deductions, tax credits or income-based thresholds. He joined the firm in through the acquisition of Lake Country Wealth Management, which he started in Think Advisor.