Tax Free Retirement
Will your income taxes be higher or lower during your retirement? Higher? How much higher? How soon will taxes go up? Are you ready?
- With your ERISA qualified retirement plan, are you really saving money on income tax?
- Does the pre-tax contribution put you into debt with the IRS?
- Does the tax-deferred accumulation put you into double debt with the IRS?
- Do you know how much “interest” (tax bill) you will be charged on the “loan” you’ve taken out from the IRS?
- You could have $1 million in your traditional 401(k)/IRA/SEP/SIMPLE, etc., but unless you can accurately predict exactly what the income tax rates will be in the first year of your retirement, then in every one of the 25 years you are expected to live off that money in retirement, can you possibly know how much of that $1m is yours to spend, on retirement lifestyle, after tax? No? And if you can’t know how much money you have left, after tax, to spend in retirement, can that make it difficult to plan for retirement?