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.
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.