How To Take Money From 401k’s & IRA’s [100% Tax-free]

(don’t forget to checkout the video too)

I talk frequently about repositioning money from your taxable retirement accounts to accounts that are tax-free in retirement.

This is often done with what’s called a Roth conversion.

This a valuable way to position yourself for a tax-free retirement! 😎

But, that doesn’t mean you want all of your money in a tax-free environment, like a Roth IRA or a cash value insurance policy.

The absolute best place for you to save is in your tax-deferred vehicles (like 401k’s, IRA’s, 403b’s, 457’s, etc.)

But only to a certain point… 🤯

That’s because these vehicles can be used to:

✅ Offset your income while you’re working (with a tax-deduction)

✅ Grow tax-deferred (meaning you push taxes out until retirement)

✅ AND, they can be taken out in retirement completely tax-free by leveraging your standard deduction. 🙌🏻

If you’re married your standard deduction is $27,700 and if you’re single it’s $13,850

That means that in any given year of retirement you can take that amount out of your TAXABLE environment completely tax-free.

You just have to be sure that the required minimum distributions that you are going to be forced to start taking (at age 72) aren’t higher than your standard deduction…

AND…. that the taxable money that you are taking out doesn’t push your provisional income high enough to trigger taxation on social security.

Let’s chat 💬😎