How To Fully Maximize Your Taxable Retirement Income in 2024 (at less than a 9% annual tax rate)

(don’t forget to checkout the video of this blog too)

We all want to achieve a tax-free retirement.

But that doesn’t mean we should pay 32% (or more) to do Roth conversions just so we can collect that money “tax-free” in retirement.

Especially when we know we can collect $123,500 of annual, TAXABLE retirement income for less than a 9% federal rate…

Now I’m sure you’re wondering where the heck I’m getting these numbers from…

Surely, It’s not possible to collect more than $120,000 a year of taxable retirement income at such a low tax rate.

But, it is…. let’s walk through the numbers

In 2024 the standard deduction is $29,200

That means that you can collect $29,200 of tax-free income from your taxable retirement assets like 401k’s, 403b’s, IRA’s, etc. (because of the offset the deduction provides)!

Anything beyond that is then going to be taxed at 10%.

But you can still collect another $23,200 of taxable income at that 10% rate ($2,320 in taxes due).

Then there’s a small jump up in the 2024 tax bracket to a 12% rate.

Now you can take an additional $71,100 at only a 12% rate ($8,532 in taxes due).

Now add all of that income up and you have collected $123,500 for only $10,852 in taxes.

Now turn that into a percentage and you only paid an 8.78% effective tax rate on $123,500 of retirement income.

Not bad, huh⁉️

Now this is where it helps to have some cash value life insurance, some non-qualified annuity income, and even some Roth IRA dollars.

This way you can fully maximize the income out of your taxable retirement assets and if you need more…

You tap into the other vehicles that allow you to collect additional income completely tax-free (which can even include your social security income).

Let’s Chat 💬😎