The Perfect Time of Life for Tax Planning – from Retirement to Rmds
Thursday, September 28, 2023
3:15 PM – 4:15 PM MST
Location: PCC: North 121
CE: 1 CFP CE Credit(s)
Complexity Level: Intermediate
Financial Planners can add value with tax-efficient planning. The greatest opportunity is from when the client retires through when Required Minimum Distributions (RMDs) begin. First, I explain how to save clients who retire after age 63 from having to pay additional Medicare premiums the first two years of retirement. Second, many clients pay little income tax before beginning social security by age 70 and RMDs by age 73. This is often a mistake. I explain tax-efficient decumulation. Third, annual cash donations typically save little tax. I explain the three ways retirees can give to charity that will save significant tax.
Learning Objectives:
Describe which clients can avoid having to pay additional Medicare premiums (i.e., IRMAA) the first two years of retirement.
Identify clients that pay too little in income tax after retiring and before Required Minimum Distributions (RMDs) begin and should trigger income after retiring to avoid paying too much income tax at too high of rates after RMDs.
Demonstrate a client's tax savings by implementing a tax-efficient charitable giving strategy: bunching donations using a donor-advised fund; donating appreciated securities; donating directly from an IRA when over age 70½ (i.e., qualified charitable distribution).
