Tax-Efficient Withdrawal Strategies for Five Groups
Tuesday, May 5, 2020
1:30 PM – 2:30 PM
This session will discuss tax-efficient withdrawal strategies for four groups of retirees and also discuss the investment implications for non-retirees. Due to the taxation of Social Security benefits and income-based Medicare premiums, many retirees will have higher marginal tax rates in retirement than before retirement. These tax features cause a retiree's marginal tax rates to rise and fall sharply as income rises. This presentation will explain withdrawal strategies, including Roth conversions, that will benefit (1) middle-income retired households, (2) higher-income retired households, (3) married retired households while both partners are alive, and (4) households that are years from retirement.
Learning Objectives:
Upon completion, participants will understand how the taxation of Social Security benefits and income-based increases in Medicare premiums can cause sharp increases in retirees’ marginal tax rates.
Upon completion, participants will know steps middle-income and higher-income households can take now that may dramatically reduce their lifetime taxes and, for higher-income households, their lifetime Medicare premiums
Upon completion, participants will understand why pre-retirement age households should consider making Roth conversions now and contributing to a Roth 401(k) instead of a 401(k) to improve their retirement prospects.
