Choosing Accounts for Tax Optimization
Taxes aren’t the only consideration when choosing a savings vehicle, but careful selection can significantly impact your lifetime benefit through tax savings.
Comparing your current income to your expected future income is a critical component of tax optimization.
Roth IRA/Roth 401k
Retirement | Annual Contribution Limit $7,000 | Income Limits Apply | PENALTIES on Pre-Retirement Withdrawals of Growth
Taxed Contributions
Tax-Free Growth
Tax-Free Retirement Withdrawals
401(k)/403(b)/Traditional IRA
Retirement | Annual Contribution Limit $23,000 | No Income Limits | PENALTIES on Pre-Retirement Withdrawals
Tax-Free Contributions
Tax-Free Growth
Taxed Retirement Withdrawals
Brokerage Accounts
Non-Retirement | No Annual Contribution Limit | No Income Limits
Taxed Contributions
Taxed Income (Interest & Dividends)
Taxed Capital Gains Withdrawals
Withdraw Previously Taxed Contributions Tax-Free
How We Can Help
As Fee-Only Financial Planners, we don’t sell insurance policies and we won’t receive commissions for referring you to our preferred partners that do.
What we can do is help you figure out if an immediate annuity is a good tool to balance the risks of your retirement income.
Read more about our one-time financial projects and other services here or schedule a FREE introductory call where we can discuss creative solutions for your specific situation.
