You have more power than you think when it comes to retirement tax planning. This episode of “Your Money, Your Wealth” is about strategies you can implement in order to create a tax-free income in retirement. Find out the benefits of investing in a Roth IRA and learn who qualifies for investing in a Roth and how much you can contribute. Joe and Al also discuss capital gains & losses demonstrating how to apply tax loss harvesting techniques and close the show with viewers’ email questions.
0:48 “When you take a look at risk when it comes to your retirement, taxes might be one of the biggest risks that can give you the success or failure, or might even be your biggest expense”
2:42 “When you sell a stock or bond or real estate outside of a retirement account, and you held it for at least a year, you get a special capital gains rate—you can actually pay 0% on your capital gains rate”
7:00 “What we’re seeing is that people are putting themselves in the higher tax brackets in retirement because all of the income they are creating is classified as ordinary income which is the highest of rates”
7:51 “Did you know: according to U.S. News, when switching jobs there are three ways to avoid paying taxes or early withdrawals penalties from your 401(k)? First, you can leave it in your old 401(k), second, you can roll it over to an IRA or third, you can transfer the balance into the 401(k) at your new employer”
9:02 “When you have a Roth IRA, you do not need to take a required distribution unless you inherit a Roth IRA and you’re not a spouse”
15:05 “Capital losses net against capital gains dollar for dollar”
19:14 “There a lot of administrative fees in 401(k) plans and there are less in Roth IRA plans”
20:08 “You can take money out a Roth IRA at any age as long as it’s a contribution”
22:19 “There are multiple ways to create tax-free income; it’s about putting everything together to figure out what’s going to work best for you”
Aired 6/20/15
