Withdrawals and Tax Implications
In addition to Social Security benefits, you probably have at least one IRA, 401(k), pension plan or other assets you’re relying on now for income – or counting on later – to finance your retirement years. At this stage we feel that you should work with a professional to maximize the benefits you receive from any withdrawals you are making or plan to make.
Below are some common retirement investments and key considerations for withdrawing your money:
|TAXABLE ACCOUNTS||(i.e., brokerage, savings and checking accounts)|
Withdrawing from these accounts first allows more time for tax-free and tax-deferred plans to potentially grow.
|TAX-FREE/TAX-DEFERRED PLANS||(i.e., Tax-Free – Roth IRA; Tax-Deferred – traditional IRA)|
You are required to begin withdrawing money at age 70½, but may consider reinvesting proceeds elsewhere if you do not need the immediate income.
|SOCIAL SECURITY BENEFITS||The longer you wait to tap these funds, the larger your monthly benefit will be when you do decide to take it. You are required to begin taking benefits at age 70.|
We can help develop a withdrawal strategy that takes all of these considerations into account. Contact us today.