Having Tax Advantage investments along with Tax deferred vehicle will reduce Tax Rate risk now, during retirement and Legacy asset Transfer
Types of Taxes
- Federal Income Tax table
- Capital Gain Tax
- State Income Tax
- Estate Tax
- Sales Tax
- Gift Tax
Do I need to worry about Tax during Retirement and Legacy Asset Transfer?
- Income Tax rate is historically low now and Government debt is increasing. If you prepare now, you can overcome the challenges from increasing Tax Rate.
- Qualified asset on Transfer will be taxed. Tax diversification will reduce the tax burden for the heirs.
- Estate Tax exclusion is the highest now. If your assets are growing during retirement and if close to that exclusion limit, a well thought out Estate Planning strategy will reduce Estate tax, if any
Is distribution from 401k/IRA tax free?
Any withdrawals from 401/IRA, including earnings, are includible in taxable income at retirement. Additional 10% penalty for any distribution before age 591/2.
Have diversified to lower your tax during retirement and during legacy asset transfer?
