The Ticking Tax Bomb: Why Your Retirement Plans Could Be An Impending Disaster
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- Опубліковано 30 чер 2024
- Discover the looming tax challenge that everyone's been talking about recently: the ticking tax bomb.
With large 401k and traditional IRA balances becoming a concern, learn from the pitfalls current retirees are navigating. Understand why wealthy individuals are urgently turning to backdoor Roth-IRA conversions.
As retirement funds grow beyond expectations due to consistent contributions and compounded returns, it's crucial to strategize now to avoid hefty tax implications in the future.
Video Contents:
00:00 - What is the Ticking Tax Bomb?
01:12 - When Does the Ticking Tax Bomb Apply?
05:05 - Sample RMD Calcs Illustrating the Issue
13:00 - Why Wealthy People Are Doing Backdoor Roth-IRA Conversions
16:45 - How to Do a Backdoor Roth-IRA Conversion
⚠️ Exercise caution before using this strategy. Do your own research and make sure you fully understand the risks you are undertaking!
💡 I do not work with clients or offer any consulting services. If you want to learn more about the best tax and investment strategies, subscribe to my channel and check out these courses ▶️ sharonwinsmith.com/courses/
The information provided in this video is owned by Winsmith Tax LLC and is solely for informational and educational purposes. It is not intended as investment, legal, or financial advice. Always consult with a professional familiar with your unique situation, or conduct your own research before making any decisions. We might receive commissions for recommending certain products or services.
Great info Sharon!
Getting some helpful tips from videos.
Thanks for watching! 😁
Great video! Will this be a problem with a ROTH 401K?
Not an issue with a Roth because distributions from the Roth are tax free.
Thank you!
Thank you for watching!
Wow, very helpful.
Many thanks
Thank you so much!
@@sharonwinsmith keep it up
I'm expecting my 401A to become a tax bomb.
It was an alternative to a pension from my employer I jumped on it.
I put in 4% they put in 13% started in my late 20's. Now I'm 40. I also have roth investments setup.
By the time I am forced to take distributions it would kick me into the highest tax bracket. For that reason I primary investment outside of that account. Roth IRA and a brokerage account.
I'll try to roll money out of that 401A to minimize taxes.
You definitely aren't alone in this issue! Thanks for watching!
I have a few brokerage Accounts with earning Qualified Dividends each year and a Roth IRA where i max out my contribution every year(for the past few years).
I do not have a 401k yet or plan to have one. So no RMDs for me!
Wouldn't my plan also be tax efferent, compared to having an IRA/401k and having to worry about RMDs later in life?
You would still want to make sure you are taking advantage of other tax planning strategies. Dividends, even qualified dividends, are still taxed at a high rate. The good news is that you aren't trying to build wealth inside a vehicle like a 401k or traditional IRA.