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During this time of year, we’re all focused on minimizing your tax liabilities as well as completing your tax return. But did you know that we can take our years of tax expertise and apply that to your retirement plan?

Will your RMDs cause you to pay more tax?

“Many people who save money in traditional 401(k)s, Individual Retirement Accounts (IRAs) or other tax-deferred investment vehicles do so assuming their income-tax rate in retirement will be lower than that of their working years. The whole premise behind tax deferral is we know we’re going to have to pay income tax on this money eventually—we just want it to be less in retirement than what we’d pay during our working years.

However, it’s not unusual for retirees to find themselves in the same or an even higher tax bracket in retirement. How so? “Many people tap accumulated wealth outside their IRAs,” says Kathy Cashatt, a Schwab senior financial planner in Phoenix. “When you add that income to Social Security and the required minimum distributions (RMDs) you can land in an unexpectedly high tax bracket.” (Click to read this article.)

Keep in mind with the passage of the SECURE Act, the age for the onset of RMDs changed to 72 for retirees who turned 70½ after December 31, 2019.

Fortunately, a number of strategies can help reduce the impact of RMDs.”

Implementing Tax-Saving Strategies

Our team of advisors are dedicated to helping you pursue your financial goals, while at the same time controlling risks. Working together, we will develop a comprehensive, long-term financial plan that implements a customized tax-saving strategy that fits your unique situation. Some of our financial planning and investment services include…

  • Retirement Planning & Income Distribution
  • Investments
  • Roth IRA Conversions
  • Charitable Giving Strategies
  • Life Insurance
  • Long Term Care Insurance

Click here to learn more about our investment strategies.

New RMD Tables for 2022

Have you reviewed the new RMD tables? The IRS has released new life expectancy tables for calculating RMDs for 2022. Click here for this resource from Ed Slott.

If you’re interesting in learning more about how we can reduce your RMD tax impact, contact us to schedule a consultation with one of our advisors. We’ll walk you through how this will apply to your unique situation.



Blog by Greg Storen, MBA – Advisory Services Director, Senior Tax Accountant

Learn more about Greg and the rest of the Storen Financial team here.