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States That Don't Tax Income
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming
States That Don't Tax Retirement Distributions
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- Withdrawals that rollover to IRA - pay taxes separately to role the full amount
- Plan Withdrawal to MAYBE use a larger amount IF the tax bracket max is NOT hit
- Plan Roth conversions given the risk that Roth conversions may be eliminated by Congress in 2022
- Rollover 401k to IRA - sets up for a Roth IRA conversion
- IRA to Roth IRA - taxable event
Purchase deferred annuity to reduce current income - Qualified Longevity Annuity Contract (QLAC)
Another way to reduce RMDs is by buying a deferred income annuity. You can invest up to 25% of your IRA or 401(k) account (or $135,000, whichever is less) in a type of deferred income annuity known as a qualified longevity annuity contract (QLAC). When you reach a specified age, which can be as late as 85, the insurance company turns your deposit into payments that are guaranteed to last the rest of your life
The portion of savings used for the annuity is excluded from the calculation to determine your RMDs. For example, if you have $500,000 in an IRA and transfer $100,000 into a QLAC, your RMD is based only on the remaining $400,000. This doesn’t eliminate your tax bill—it just defers it. The taxable portion of the money you invested will be taxed when you start receiving income from the annuity.
QLACs offer other advantages to retirees who want guaranteed income later in life. Because you’re deferring the income stream, payouts are much higher for deferred income annuities than they are for immediate annuities, which start payouts right away. For example, a 65-year-old man who invests $100,000 in an immediate annuity will receive a payout of $493 a month, according to www.immediateannuities.com. That same amount invested in a deferred-income annuity that begins payments at age 80 would pay $1,663 a month.
define options for accumulation period, investment guaranteed minimum returns, principal return to beneficiaries etc
Medicare Premium Fees for Part B for 2024
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https://www.yahoo.com/finance/news/generational-wealth-7-reasons-not-183924989.html
Of course, in some instances, bequeathing your home to your children after you die could be the best move. As long as everyone is in agreement on the terms, leaving your home to a child can help preserve generational wealth while giving young adults a head start with a house of their own.
If you decide you want your child or children to take over your home after you die, a trust might be the best way, according to ISVGlaw.com, the website for Melville, NY-based legal firm Schneider, Garrastegui & Fedele. A trust can help your children avoid capital gains taxes on the property, help avoid the hassles of probate, and keep the home under your control until you die.
Potential Challenges
Candidate Solutions
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