Retiring With a Large IRA Comes with Tax Traps

The good news: You have a large 401(k) or IRA.

The bad news: You have a large 401(k) or IRA.

Retiring with a large IRA is a good problem, but it is still a problem and careful planning now is more complicated, making it even more important than it’s ever been before.

A large traditional IRA or 401(k) balance represents decades of discipline, and it’s proof that you did a lot of things right: you saved consistently, invested through market cycles, deferred gratification, and resisted the urge to treat every bonus like a personal stimulus package. You kept socking it away during market highs and lows.  I wrote about retirement tax planning between work and RMDs. You can see that one here.

Life was simple during the working years– just keep saving and accumulating.

But retirement changes things. The decumulation stage is different – Uncle Sam is now at your door, and he comes with a lot of potential traps that can come as unwelcome surprises.

You’ll learn more about this and other important topics when you sign-up for my newsletter. Sign up today and you’ll receive a copy of my special 10-page report on the tax traps that await those who retire with large IRAs. I think you’ll find this one worthwhile. Naturally, you can unsubscribe from my monthly letter at any time.

Enjoy!

Jim

You can also learn more about how tax planning changes during retirement here!

Jim Lorenzen

Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® professional and an ACCREDITED INVESTMENT FIDUCIARY® serving private clients’ wealth management needs since 1991. Jim is Founding Principal of The Independent Financial Group, a Registered Investment Advisor providing wealth management, retirement planning and investment advisory services. Jim's background includes founding, building, and selling five successful businesses and international consulting. He has been headline speaker at more than 500 national and international association and corporate conventions for clients such as Foster Grant, Hobie Cat, CapCities/ABC, H.R. Textron, Hearst Corporation, The National Management Association, the National Newspaper Association, and Cox Communications and has been featured on American Airlines' Sky Radio heard on more than 19,000 flights, as well as in The Wall Street Journal’s SmartMoney magazine, The Profit Sharing Council of America’s Insights; also published in the Journal of Compensation and Benefits, NASDAQ, and in scores of national and international association trade publications.

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