By: Marge Grzeszczuk, ALMI
Sales Coordinator
“In this world, nothing is certain except death and taxes.”
– Benjamin Franklin
You’ve already taken a smart step by investing in an IRA or annuity to build a secure and stable financial future. But with today’s shifting retirement landscape, increased consumer prices and changes to retirement savings rules, many of which directly impact how and when your savings are taxed, it’s more important than ever to protect your savings from unnecessary taxation.
What if there were a simple, gradual strategic move you could make today to help ensure more of your hard-earned money stays in your pocket? Here are two powerful tax strategies to consider:
• Roth Conversions: Consider converting portions of your traditional IRA or 401(k) to a Roth IRA while your income may be in a lower tax bracket. Yes, you’ll pay taxes now, but future withdrawals will be tax-free. This could benefit retirement savers who expect to move into a higher tax bracket in retirement, want to decrease the amount of required minimum distributions (RMDs) or aim to leave tax-free income for their heirs.
• Strategic Withdrawals: Use a mix of taxable, tax-deferred, and tax-free accounts to manage your tax bracket in retirement.
A Roth IRA conversion strategy is not a one-size-fits-all solution. These are just a couple of
strategies to consider. A conversation with your financial tax planner can help tailor a plan to protect your retirement income and ensure long-term financial stability.
And remember – PRCUALife offers a conservative annuity portfolio that includes Traditional and Roth IRAs that can meet your financial goals with confidence and peace of mind.
Contact your local PRCUA Sales Representative or the Sales Department directly to get started. Email me at sales@prcua.org or call (800) 772-8632 ext. 2755 today.
