In this week’s Hidden Wealth Review, I teach how to avoid the government’s 50% penalty. This amounts to nothing more than a hidden stealth tax. For those of you who turned 70½ last year, you need to take immediate action to avoid this unnecessary 50% tax.
The “tax” is in the form of a penalty that you are assessed if you don’t take your Required Minimum Distribution (RMD) by April 1st. IRAs and their associated RMDs are a ticking tax time bomb!
At this time of the year, people are asking their CPAs how to save tax. The typical advice is to quickly make a contribution to an IRA. The problem is, you don’t save tax with an IRA, you only defer the tax. Eventually, the government forces you to take your money out of the IRA (whether you need it or not) as an RMD.
In the meantime, your IRA money is held hostage by a 10% early withdrawal penalty. Then, you are forced out of your IRA savings at 70½, under the threat of a 50% distribution penalty. Just to add insult to injury, the distribution often causes up to 85% of your Social Security income to be taxed. Lastly, your children are exposed to an inherited RMD that they must take or face a 50% penalty, regardless at what age they inherit the IRA.
There are two 50% taxes that all of us have or will face in our lifetimes. The first tax is on the deferred growth and savings on our IRAs. This tax could easily rise to 50%. The penalty for not taking your RMDs is already 50%. The second tax is what the stock market calls a “correction penalty.” This indirect tax is also known as a market loss.
The Treasury Department recently announced that the federal government lost over $1.2 trillion in tax receipts last year due, in part, to 10,000 people retiring from the workforce every day. Faced with this drastic reduction in payroll taxes, the government is scrambling to find every dime of tax it can. IRAs and 401(k) are squarely in the IRS’s crosshairs.
You can avoid or simply stop RMDs. Whether you’re currently struggling with RMD’s or if you’ll soon be facing them, I can teach you how to not have RMDs or the worry of higher tax rates that are coming. I will also teach you how to avoid the 50% market correction penalty, all while generating tax-free retirement growth, income, and inheritance.
This coming Tuesday, I will be teaching my Retirement Protection Webinar. During this log-on and learn event, you will discover how to avoid RMDs, the 50% stealth tax and how to stop losing money to taxes and the stock market, once and for all!
To register for this no-cost, no-obligation educational event, simply go to www.RetirementProtected.com, enter the required information and submit your registration. Once you’ve registered, you’ll receive an email containing a personal link to join Tuesday’s event. These events fill quickly so hurry and register. Just for registering and attending, I will gift you an e-copy of my book, The Baby Boomer Retirement Breakthrough-The Unfair Advantage to a Safe and Secure Retirement.
-Spouses are encouraged to attend this event together-
(855) No Tax 2 U
Here’s to your Hidden Wealth,