Third Quarter 2024
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MAXIMIZING RETIREMENT INCOME
Provided by Kathy Chesney, ChFC, CLU and Niko Pandeleos, Associate Financial Advisor Not sure how to start saving for retimrenent? Or maybe you are trying to make more money post retirment. Check out these tips. Know How Your Retirement Savings Accounts Are Taxed Withdrawals from traditional generally means it is made after a five-year waiting period and the account owner is 59½ years or older. As for your nonretirement accounts, bond income and some of the dividends you receive from stocks and mutual funds may be taxed at your
deferred. But, depending on the circumstances, this order may not be right for every person. If most of your investment gains are from long-term assets held outside of a traditional 401(k), IRA or other similar tax deferred accounts, you’ll likely pay long- term capital gains taxes, which are generally lower than what you pay on distributions taxed as ordinary income from your tax-deferred retirement accounts. You’ll also need to consider the impact of your retirement savings on your taxes once you reach age 73 (or age 75 after 2032). It’s prudent to consult with a financial advisor or tax professional regarding retirement income and tax planning strategies.
federal ordinary income rate, but qualified dividends and long-term investment gains are generally taxed at lower long-term capital gains rates. State and local tax treatment may vary. Develop a Thoughtful Distribution Strategy For some people, it will make sense to consider tapping taxable accounts first, then tax
401(k) plan accounts and certain other employer-sponsored plans, as well as traditional individual retirement accounts (IRAs), will generally be subject to federal and state ordinary income taxes upon withdrawal. On the other hand, contributions to a designated Roth 401(k) account or Roth IRA are federally tax-free when you withdraw those funds, as are the earnings, assuming the withdrawal is a qualified distribution, which
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