Taxes in Retirement Part 1

Did you know there’s a specific order of withdrawals that can help maximize retirement savings? Taxes can quietly become one of the biggest factors in how much retirement income investors and retirees actually keep. In this episode, Trey and Yelisey explain how Social Security taxation, withdrawal order, progressive tax brackets, RMDs, and account location can all affect a retirement plan. They also emphasize the value of proactive tax strategy so retirees can make informed decisions before small mistakes become expensive surprises.What you’ll learn in this episode: (01:52) Social Security benefits are subject to federal taxes depending on total income sources.(03:00) Provisional income is the key calculation used to determine what percentage of Social Security is taxable.(03:49) Taxation of Social Security has changed significantly since 1984, moving from tax-free to potentially 85% taxable.(05:48) Most financial experts recommend a withdrawal sequence starting with brokerage accounts, followed by pre-tax accounts, and ending with Roth IRAs.(09:12) Proper asset location involves placing higher-growth equities in Roth accounts while keeping safer assets in pre-tax vehicles.(11:27) Required Minimum Distributions must be planned well in advance to avoid unexpected tax consequences.(12:57) Excessive retirement income can lead to higher Medicare premiums and the loss of certain itemized medical deductions.(15:46) New legislation introduced a temporary senior tax deduction of $6,000 for qualifying individuals aged 65 and older.Learn more about Trey C. Peterson, Yelisey Kuts, and All Things Financial: https://atfwealth.com Subscribe to the podcast: Apple Podcasts: https://podcasts.apple.com/us/podcast/id1728281696 Spotify: https://open.spotify.com/show/2iIDj87XpGTlEl9Qiu6wwi YouTube: https://www.youtube.com/@allthingsfinancialshow?sub_confirmation=1 Trey C. Peterson and Yelisey Kuts provide an extensive level of knowledge and service in areas concerning retirement strategies, including tax strategy, investments, estate planning, life and long-term-care insurance, Social Security, and Medicare. A one-stop shop for all your retirement needs, visit https://atfwealth.com to learn more!Have questions about retirement planning or other financial topics? Email Yelisey and Trey, and your topic might be featured in a future episode! Don't forget to leave a review and share this podcast with anyone looking to boost their financial knowledge.Schedule a meeting with us: Trey C. Peterson: [email protected] Yelisey Kuts: [email protected] Phone: (612) 286-0580Contact us: https://atfwealth.com/contact-us Trey C. Peterson is a Retirement Planning Specialist with All Things Financial. Trey is a graduate of Oral Roberts University with a degree in Corporate Communication. He is currently pursuing his master’s degree in leadership. He is also a graduate of The National Institute of Christian Leadership.Yelisey Kuts is a Fiduciary Wealth Advisor with All Things Financial. He holds a master’s degree in business from Oral Roberts University. Aside from being a financial advisor, Yelisey has taught classes on a wide range of retirement topics since 2015. At All Things Financial, our mission is simple—help individuals and families create lasting financial freedom. We take a personalized, strategic approach to every plan, aligning it with your goals, values, and vision for the future. https://atfwealth.com This episode was produced by Story On Media: https://www.storyon.co/