Episode 216: The Retirement Tax Mistake That Costs Thousands
About this episode
Wade and Alex discuss key retirement tax planning strategies and the complexities of the tax code.
In this episode of Retire With Style, Wade and Alex discuss key retirement tax planning strategies, including Roth conversions, effective marginal tax rates, and the role of income tracking in decision-making. They examine long-term capital gains treatment, IRMAA surcharges, and the structural design of retirement accounts. The conversation also highlights the complexity of the tax code, the value of automated tax-mapping tools, and strategic considerations such as using reverse mortgages to manage tax liabilities. Takeaways Expenses do not equate to tax bills in retirement. Roth conversions can help manage tax implications of RMDs. Medicare IRMA surcharges are not affected by Roth conversions. A 12% EMR target is reasonable for most retirees. Monitoring income is crucial for effective tax planning. Long-term capital gains can be harvested at 0% under certain conditions. Simplifying the tax code could alleviate financial planning complexities. Roth conversions do not have a defined break-even age. Effective marginal rates consider more than just income tax brackets. Qualified Longevity Annuity Contracts can defer RMDs. Chapters 00:00 Understanding Required Minimum Distributions…
More episodes of Retire With Style
- Episode 225: 3 Tax Strategies to Improve Retirement Income Efficiency
- Episode 224: Reverse Mortgages: Misunderstood or Misused?
- Episode 223: Downsizing in Retirement: When to Sell, When to Stay
- Episode 222: Do You Actually Need Long-Term Care Insurance in Retirement?
- Episode 221: What Actually Counts as Long-Term Care?
- Episode 220: Why Your Health Insurance Stops Working at 65
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