Ana Echeverri • July 6, 2021
5 Tips On How To Minimize Your Taxes in Retirement

Minimizing your taxes in retirement by understanding the ground rules

To minimize taxes in retirement, and generate more retirement income, it’s important to know the tax treatment of your different income sources in retirement.  How those sources interact will help determine the right sequence for drawing down accounts.


You should also keep in mind the SECURE Act, which took effect on Jan. 1, 2020, and has changed many rules around qualified retirement accounts, including contributions and withdrawals.

Here are 5 tips for you:

Manually writing on paper

Tip #1: Know the benefits of tax diversification

  • One way to gain flexibility is through tax diversification when you mix various tax categories using various financial vehicles within your financial portfolio.

Tip #2: Understand asset location

  • This has the potential to help lower your overall tax bill by putting high tax investments in tax-deferred or tax-exempt accounts rather than taxable accounts, you can potentially improve the overall tax efficiency.


Tip #3: Know the differences between retirement savings accounts

  • Make the most of your 401(k), IRA, HSA and other tax-advantaged accounts to build wealth for retirement.  Discover smart tax and social security tactics and learn financial tips to grow your nest egg.


Tip #4: Understand required minimum distributions

  • Your required minimum distribution is the minimum amount you must withdraw from your account each year.  You generally have to start taking withdrawals from your IRA, SEP IRA, SIMPLE IRA, or retirement plan account when you reach age 72 (70 ½ if you reach 70 ½ before January 1, 2020).


Tip #5: Consider Roth conversations

  • A Roth IRA is a special type of IRA account.   Just like a traditional IRA, earnings accumulate on a tax-deferred basis, and participants are subject to specific rules, such as annual contribution limits.  However, Roth IRA owners are not subject to required minimum distributions (RMDs) at age 72 as owners of traditional IRAs or 401(k) plans can be.


Get started on your plan for tax-efficient retirement income.   Start with a holistic long-term financial plan, incorporating a variety of solutions to grow and protect your investments.


Know the tax treatment of your different income sources in retirement, and understand how those sources will interact when making withdrawals will help you immensely.   Act now for more tax-efficient retirement income in the future.

How can we help you?

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Need a professional with a wide range of knowledge in such tax-related subjects as income, estate, gift, payroll, levies, returns, inheritance, non-profit and retirement taxes?


Call us!   We are Tax Specialists serving our clients since 2012


Ana Echeverri & Associates, at (407) 601-3157


We will be happy to assist you.


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Our office hours are Monday thru Friday, from 9 A.M. to 5 P.M


https://www.anaecheverriassociates.com


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Ana Echeverri

Ana Echeveri is a Certified QuickBooks ProAvisor Advanced Online
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Are you ready to maximize your tax refund this year?

By Ana Echeverri • December 5, 2024
Are you ready to maximize your tax refund this year? 🏦💰 It’s time to get money-savvy and make the most of tax season! Here are some tips to help you claim every dollar you’re entitled to: . 1. Organize Your Documents Early Keep track of receipts, tax forms (W-2, 1099, etc.), and deductions throughout the year. A little preparation goes a long way in reducing stress and uncovering savings. . 2. Maximize Your Deductions Did you know that job-related expenses, medical bills, and charitable donations might qualify as deductions? Itemizing could unlock hidden savings that the standard deduction might overlook. . 3. Don’t Forget About Tax Credits Credits like the Earned Income Tax Credit (EITC), Child Tax Credit, and education-related credits (like the American Opportunity Credit) can significantly increase your refund. These credits often provide dollar-for-dollar savings. . 4. Contribute to Your Retirement Account Contributions to an IRA or 401(k) not only secure your future but also offer immediate tax benefits. Plus, some contributions might be deductible even after December 31! . 5. File Early Filing early reduces the chance of tax fraud and helps you receive your refund faster. Don’t procrastinate; the IRS starts processing returns in January. . 6. Double-Check Everything Simple mistakes like incorrect Social Security numbers or missed signatures can delay your refund. Review your return carefully before submitting it. . Remember, every dollar counts! A little effort now can lead to a bigger refund later. . Stay smart with your taxes! Reach out to us today and experience the difference of working with seasoned professionals! . Office #: (407) 601-3157 Off. hours: Monday through Friday, from 9 A.M. to 5 P.M. Email address: Ana@AnaEcheverriAssociates.com . Website: https://www.anaecheverriassociates.com/ . >>> [HABLAMOS ESPAÑOL] <<< . #OrganizeYourTaxes #SafeTaxDocuments #TaxSeason2023 #EarlyTaxFiling #TaxRefundSeason #FinancialPlanning #TaxPreparation #IncomeTaxTips #EstimatedTax #SmallBusiness #TaxTips #SmallBusiness #TaxDeductions

5 Savings Tips for your Returns

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