I find that RMDs are one of the least understood & not well-planned tax events in many taxpayer’s lives. At 72, the law requires that most people begin taking ...RMDs, from these tax-deferred accounts (401k, IRA, similar) while easily causing a retiree to pay more in #tax then they should.
The article talks about doing Roth Conversions closer to #retirement, which if done properly can be a very good idea.
However, there is much more taxpayers can do during their careers with Roth funds resulting in far less or no tax. Here's 3 quick strategies:
1. Life's a journey & things happen so in lean years (recession, job loss) a Roth Conversion could be taxed are far lower rates then later.
2. In lean years or years with reduce income due to a life event (unpaid or reduced pay for sickness, injury, maternity, etc.) classify more or all your 401k contributions as #Roth’s (non RMD funds).
3. I'm a huge fan of Back Door Roth’s as there a great way to diversify your retirement & increase Post-Tax (non RMD funds) accounts, all while being able to make contributions beyond the W2 limits.
#ramlcpa #tax #taxplanning #401k #IRA #Roth #rmd #rmds #taxsavings #retirementstrategy
#retirementplanning #retirementgoals #taxstrategy #retirementplan#RothConversion
Travis Raml, CPA
Travis Ram, CPA is a Columbia Maryland CPA working with Individuals who have complex tax and financial matters & small and mid-sze Businesses.
Consulting | CFO
Incorporation & Setup
Payrol l Services
Doctor & Physicians
DCAA & Governments Contractors
Travis Raml, CPA & Associates is a Columbia MD CPA Firm with the focused goal of helping our clients achieve new levels of success while avoiding the stumbling blocks that hit most small businesses.
This is accomplished by applying technical & practical business experience from the past 20+ years. This is also achieved by real world lessons learned, constant research & skill building, and application of improved & best business practices.
Our primary services include : Accounting & Financial Reporting, Tax Preparation & Planning, CFO & Business Advisory Services. DCAA Compliance & Government Contracting, Tax Resolution (IRS & State), Wealth Growth & Management, Business Incorporation & Setup, Coaching & Training Services, and finally Other Consulting Services on a case by case basis.
Located in Columbia, MD we're less than 5 minutes from I-95 and in the heart of the DC, MD, and VA region.
Phone: (443) 927-9161
Fax: (443) 927-9152