Introduction -- Don't Wait to Withdraw- How Implementing a Retirement Withdrawal Strategy Now Can Slash Your Tax Bill Later -- Six Questions, Six Reasons You Need a Withdrawal Strategy -- Moving From Savvy Saver to Smart Spender- Shifting Your Mindset on the Retirement Roller Coaster -- Let's Get Specific- How a Couple with Retirement Accounts Totaling 1.2 Million Can Simply Save Almost $20,000 in Taxes with a Smart Withdrawal Strategy -- More Examples of Ways to Save- Account Values $1.5 million-$3 million, with Savings up to $170,000 -- Lessons Learned, and a 60 Percent Savings Surprise for Lower Account Values -- Married with Savings- Saving with a Second Social Security Benefit and Different Ages -- Single Scoop- Single Savvy Savers May Also Save $100,000 or More Using a Smart Withdrawal Strategy -- Let's Do it! Turn Your Chosen Strategy into a Tax-smart Withdrawal Plan Right Now-and Why You Shouldn't Wait -- Review, Revise, Retain: Using Annual Checkups to Keep Your Plan Running Well and Save Even More -- Conclusion- Better Prepared for the Ride.
Summary:
"You may have spent years saving for retirement--but have you thought of the best way to use the money you saved? How you withdraw from your IRA, 401(k), and other accounts can have a major impact on how much you will pay in federal income taxes during retirement. Topics covered by this book include: Conventional wisdom--waiting to use "tax deferred" 401k and IRA accounts until Required Minimum Distributions begin at age 72- can lead to paying more taxes than you need to; One simple change to your retirement withdrawal strategy can save thousands of dollars in federal income taxes over your retirement years; You can implement the change without new investments, purchases or fees--just use your existing accounts; Evaluate whether you can save in taxes by using an online Retirement Tax Saver tool; Use the Retirement Tax Saver tool to pick your winning withdrawal strategy and estimate how much you could save over the course of your retirement years; If you are at least 59 1/2 years old, you can and should implement a withdrawal strategy now to take full advantage of the strategy before 2026 when the current tax cuts expire; Design a strategy that takes into account your tax deferred and other assets, your Social Security benefits, and other sources of income. (Yes, Social Security can be subject to federal and even state income taxes!); Find out which states tax Social Security--and how a withdrawal strategy could save you even more if you live in a state with income taxes. After searching in vain for helpful information on retirement withdrawal strategies, I decided to create a retirement tax simulator I call the Retirement Tax Saver tool. The tool shows that how and when money is withdrawn from retirement accounts can have an enormous impact on taxes. I thought the information was important enough to share that I interrupted my attempt at early semi-retirement to write the book, From Savvy Saver to Smart Spender: How to Pick a Tax-Wise Retirement Withdrawal Strategy. Every retiree, single or married, with substantial savings will have to decide how to withdraw their money in retirement. With tax rates scheduled to increase in 2026, and potential tax increases even sooner, this decision is even more critical today. About 80 percent of retirees wait to use tax-deferred accounts such as 401(k) and IRA accounts until they "have" to withdraw from them at age 72 (when Required Minimum Distributions kick in for most people). That "Conventional" approach, however, can wind up costing a lot more in taxes in the years after 72. This book shows you a better way that takes advantage of lower tax rates before you reach age 72. Did I mention that this strategy does not require you to buy into any new insurance or investment products or pay a single cent in new fees, hidden or not, of any kind? In short, in the time it takes to read this book and input your personal information into the online Retirement Tax Saver tool, you will be ready to implement a simple withdrawal strategy for retirement immediately that could save you thousands, or even tens of thousands, of dollars over the course of your retirement."--Amazon.com
This resource is supported by the Institute of Museum and Library Services under the provisions of the Library Services and Technology Act as administered by State Library of Iowa.