Are you planning your retirement or Uncle Sam’s?
If you are contributing to a Qualified Plan such as an IRA, 401(k), 403(b), SEP you have a retirement account that is growing tax deferred while in the accumulation years.
The Tax Man Has a Plan … Do You?
The Impact of Taxes
Phases of Retirement Planning
- Contribution Phase
- When you add money into your traditional IRA, 401(k), 403(v), or SEP, you get a Tax Deduction.
- Accumulation Phase
- While your account grows in value year after year, the interest is not reported on your tax return.
- Distribution Phase
- Any withdrawals you make from your account are taxed at the current tax rate.
- Transfer Phase
- When you transfer your account to a beneficiary, the balance is taxed 100% at the current tax rate.
Right now, tax rates are at a historical low, and will go up in the future. What rate will you be paying when you withdraw from your account?
The “Government Plan” means paying more taxes.
Our Tax System is a Penalty on Savers!
Is Postponing Tax Really the Best Idea?
You need to Develop an “Exit Strategy” which is a distribution plan so that you do not end up with the Government Plan!
Make an appointment today to discuss your Exit Strategy Plan!