Ask Terry Questions income tax strategy

income tax strategy

By Terry Savage on July 31, 2018 | Financial Planning / Retirement

To achieve optimal savings from the new lower tax rates, that apparently will “snap back” in 8yrs, should I pull some $ out of IRA/brokerage accts. (thus taking advantage of lower tax rate, but muting future growth), or leave $ in till the RMDs kick in (I’d be paying more in taxes , but would have much more) … how does one find a “great” tax expert?

Terry Says

That’s a silly idea. Who knows what Congress will do in the next 8 years?! Instead, keep your money inside your tax-deferred account and convert a portion of your IRA to a Roth every year, paying taxes at your current low rates. Then the money will continue to grow tax-free — and you can withdraw it tax-free if the government keeps its promise on Roth IRAs.

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