Retirement and Financial Planning

Tax Strategies

Tax Planning for Required Minimum Distributions: RMDs

Starting at age 70-1/2, you are required by the IRS to start taking money out of your 401(k), your traditional IRA accounts—all of your tax-deferred money—and pay ordinary income taxes on the required amounts withdrawn. Age 70 comes faster than many retirees expect, and the low tax bracket they thought they’d have in retirement can suddenly skyrocket higher because of money they have to take out and pay taxes on, whether they need the money or not.

Of course, you have to pay your fair share of taxes. But, it’s critical to plan ahead and develop strategies to keep RMDs at a minimum in order to protect and preserve your retirement assets to help ensure they last throughout your life. At United Financial Group, we have access to many tax and RMD strategies to help you. Let’s start the long-term retirement tax planning process now instead of later.

Tax Planning for Future Generations

There are few things more important to successfully transferring wealth than solid financial planning. The failure to plan a tax-efficient wealth transfer can greatly diminish the amount of wealth that ultimately reaches the next generation. With so much focus on building an effective retirement plan, creating an equally effective plan for transferring hard-earned assets can unfortunately be an afterthought.

For those with the goal of leaving a lasting legacy, developing a tax-efficient wealth transfer strategy is a decision that can impact generations to come as well as to foster harmonious relations in the family. Here are some key points to consider when planning a tax-efficient wealth transfer:

  • Be proactive and start estate planning early. Planning needs to start many months, if not years, before the ultimate transfer.
  • Involve family members in the process. The passing of a loved one is challenging enough without having to sort through the complex problems of a poorly planned estate.
  • Find an experienced and trusted advisor.
  • Explore the various options available and decide what is best for you and your heirs.
  • Develop a charitable giving plan and an estate plan.