The FIRE Early Retirement Tax Credit Strategy Nobody Models

Episode 56 of The FIRE Podcast digs into a FIRE blind spot that almost nobody runs the numbers on: the Retirement Saver's Credit, also known as the Saver's Credit. Lucas walks Luna through why it's not just for low-income workers but how early retirees with carefully managed taxable income can claim a credit worth up to $1,000 per person — or $2,000 for couples — every single year. They run the math on a concrete example: a FIRE couple with $40,000 in spending, $20,000 from Roth conversions, and a $2,000 contribution to a traditional IRA or 401(k) that unlocks a $400 credit. But here's the twist: the credit phases out above $36,500 of adjusted gross income for a single filer in 2025, and many FIRE folks accidentally earn too much from part-time work or Roth conversions. They discuss the trap, the opportunity, and how to tilt your withdrawal strategy to capture this credit year after year. #FIRE #EarlyRetirement #SaversCredit #RetirementSavings #TaxStrategy #PersonalFinance #Finance #FexingoBusiness #BusinessPodcast #LucasAndLuna #TaxCredit #RetirementPlanning #RothConversion #IncomePlanning #FIRECommunity #FinancialIndependence #WealthBuilding #TaxEfficiency Keep every episode free: buymeacoffee.com/fexingo