Most people have their retirement money locked up in savings plan at work and IRAs, and most business owners have their retirement money locked up in the business.
Few people have a strategy to access those funds in a tax-efficient manner.
The focus has been to get as big a deduction now, without consideration for the taxes later.
But there's an elephant in the room ... The fact that every tax payer will pay more in 2026 unless Congress does something to change it.
Most of the federal tax laws will expire at the end of 2025, and Congress might just let it happen.
With a soaring federal deficit and deeply divided political climate, taxes could go much higher in the future.
It's essential to consider what will happen when you start taking money out.
Consider how much you will be paying in taxes after you retire and when you are forced to take money out at the required beginning date.
You could develop a strategy to smooth out your taxes or eliminate them at some point by taking advantage of time.
Let PlanPrep run the numbers for you.
Then we'll discuss the possibilities with you and your tax advisor to decide on how to best proceed.
We are not tax advisors. We work in conjunction with you and your tax advisor
to be sure you make the best decision for your situation and needs.