403b @457
Terry we are thinking about retiring soon and we have been able to keep our adjusted gross income down yearly by contributing to qualified plans through our employer. My question is once we retire what if any plans can we contribute to so that we can possibly reduce our gross income.
thank you,
Terry Says
None!1 Anything you withdraw from one of your retirement plans will be considered ordinary income. Your SS will be taxed as ordinary income. And soon – age 73–you will be forced to take money out of your retirement plans (RMDs). Your only deductions will revolve around the standard deduction and charitable contributions you can make directly from your IRAs.
This is the time to enjoy your savings — and pay tax on your withdrawals. Of course you can pass any unspent money on to your named beneficiaries. And they will have a while to make the money grow (10 years) till they too must start withdrawals!
One suggestion: roll your employer plans into a rollover IRA at Vanguard or Fidelity where you will have a better choice of conservative investment in mutual funds. They will help you handle the rollover so no taxes will be due.
