Choosing Your Tax Bracket in Retirement Versus Being Forced

(don’t forget to checkout the video too)

Before age 73 you have a lot of freedom in retirement.

That’s because you have the ability to CHOOSE which tax bracket you are in…😎

However, there is a point where that choice is taken from you.

That’s when your required minimum distributions (RMDs) kick in…

If these are managed correctly, you can still achieve a completely tax-free retirement.

But, if mismanaged, you could force yourself into a much higher tax bracket in the later years of your retirement!

The problem that many people create is that they have too large of a balance in their taxable retirement accounts at age 73.

This is the point where you are FORCED to start taking systematic, increasing withdrawals, every year…

But, why⁉️

So the government can collect the tax money that you owe them…

But, since we know how much how much we are going to have to withdrawal, we can plan accordingly…

And our goal is simple:

Prevent our RMDs from forcing us into a higher tax bracket AND….

Prevent our RMDs from triggering an unnecessary tax on our social security.

The best way to do this is to strategically spend down your taxable assets before collecting social security and before RMDs start.

You can also be doing Roth conversions which will completely eliminate the risk of additional income forcing you into higher tax brackets as well.

It also will not be considered provisional income and will therefore not effect the taxes on social security…

Let’s chat 💬😎