In this week’s Hidden Wealth Review, I teach why your IRA is putting your retirement at risk. This risk is primarily due to the IRS. There are three main areas where your IRA is putting your retirement at risk. You can remember these three retirement risk areas by using the acronym BLT. BLT is easy to remember. It’s the reference for a bacon, lettuce and tomato sandwich. The Tax Independence BLT acronym stands for:
- Benefits – This includes Social Security and Medicare Parts B & D. These benefits are at risk because the money you put in your IRA, 401(k), 403(b), etc. subjects 85% of your Social Security income benefit to taxes. It can also trigger an extra premium on Medicare Parts B & D.
- Lifestyle – Withdrawals and Required Minimum Distributions (RMDs) from tax-deferred retirement accounts risk reducing your lifestyle because 20% to 40% of the money taken out of these accounts goes to taxes, right off the top. Because of this, money in a tax-deferred account typically only lasts about eight years. Presently, most people live 20 or more years in retirement.
- Transfer – Congress appears ready to end the “stretch IRA,” which is a way to avoid heavy taxes on an inherited IRA. Inherited IRAs will have to be liquidated within 60 months. If your children inherit your IRA, they will most likely be in their highest wage-earning (and tax paying) years. This way, the government collects about fifty cents of every dollar that was saved into an inherited IRA.
I want to teach you how to avoid the IRA tax trap. Independence is defined as freedom of control. Learn to get freedom from tax and control your retirement! This coming Thursday, I will be teaching my Retirement Protection Webinar. Don’t let the holiday stop you from getting your retirement safe from taxes.
It’s time to declare your independence from unnecessary taxes! A client who is a retired CPA recently shared, “It’s sad how many people miss this opportunity to save taxes. My experience is that people are more concerned about what the IRS can do to them then they are about how they can help themselves save taxes.” If you have money saved in an IRA or 401(k) please stop, right now, and register for Thursday’s event.
To register go to www.RetirementProtected.com, enter the required information and submit your registration. Once you submit your information, you will receive an email containing a personal link to join Thursday’s event. Spouses are encouraged to attend this event together.
When you register and attend the webinar, you’ll receive an e-copy of my latest book, The Baby Boomer Retirement Breakthrough. This book teaches you the top five retirement risks and the unique solutions you can use to avoid them.
Here’s to your Hidden Wealth,