As we play our chess match against the IRS, we have to adapt to the rules as they change.
In retirement income and tax planning the long-standing conventional wisdom has pounded the table to “defer, defer, defer” therefore most people contribute pretax to their retirement plans and let it grow as long as possible. While often the default contributing to 401k and 403b plans with pretax deferrals creates tax consequences that leaves savers at the whim of future tax rates and rules. We work to utilize the accounts available to us and leverage the tax benefits in our favor, but are you focused on a pawn while leaving your king exposed? Given the flood of new tax law and recent regulation changes, make sure your strategy still delivers a winning outcome.
Like an gambit in chess you must assess the potential outcomes of your current IRA, 401k or any qualified retirement savings. These are no longer your only option, investors have more choices than they know. The opportunity for ROTH contributions, Roth 401k or ROTH conversions create the strategies to shift board in your favor and capture checkmate
IRA experts Ed Slott shares his advice on how delaying retirement income no longer makes sense
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