Increasing tax rates are the reason I rolled over my 401k to a Roth. I don’t want to be 59 paying taxes on current income on withdrawals made from my retirement account.
Pre-tax contributions may help reduce income taxes in your pre-retirement years while after-tax contributions may help reduce your income tax burden during retirement.
Both have their perks but you can also save for retirement outside of a retirement plan, such as in an individual investment account or employing the services of a retirement planner/investment advisor.
Have you searched? Use any investor/advisor tool. Look for Monica Mary Strigle I am close to retirement with 1.4 M to my name outside of retirement accounts. I hired her services 3 years ago, she contributed immensely to my portfolio progress.
This was very helpful. I have been wanting to take a small withdrawal to do some home renovations and now I have a better understanding on how much to take without bumping up my tax bracket. Also, I wasn't thinking about the Medicare Part B premiums, so this video was super helpful. Thanks!
My plan is to take out the amount that when combined with FERS and SS keeps me in the current 12% tax bracket. Even if I don’t need that much because it is better than having to make a 22% withdrawal for some need.
It is interesting to listen the the whole hoopla about Traditional/Roth TSP, if you look at your taxes you are most likely going to be in the same or LOWER tax bracket in retirement and can live just fine especially if you retire with a paid off house and no debts. I'd rather max out the HSA with a HSBA and have all of that tax free medical money that continues to grow even after contribution end when Medicare begins. Plus, "You can even use your HSA to pay for some Medicare expenses including your Medicare Part B, Part D and Medicare Advantage plan premiums, deductibles, copays and coinsurance"
I retired at 55 the rule of 55 law is like a miracle, the bureaucrat that came up with it was a genius. Just say’n sometimes those goofballs get it right. 🏆🤫🏆
Hans I am 66 will be 67 on November 23 I am retired and want to transfer my traditional Roth over to a Roth conversion will that be a good ideal I don't have a lot but I want to transfer it over. Or should I leave where it is at until I am 70. Thank you so much.
Most federal retirees will be in a lower tax bracket in retirement than during their working period. If I retire after 30 years of federal service and collect Social Security at 62 .. I will earn only 50 % of my salary. I will need a ton of money in my TSP to = 100 % of my salary. Most retirees will see about 50-80 % of their salary in retirement thus will be in a lower tax bracket in retirement anyway ... and SOC , Medical deductions won't be needed.
Hey Dallen, great information. Thanks! I withdrew 65k while working from trad TSP with 20% off the top. I'm going to be in a higher tax bracket for that. How long does the new text bracket last? Indefinitely? thanks!
I really enjoyed this episode! One question: I have a couple of pensions that I already receive (really good and equal to my current salary). I'm retiring at age 62 next year and only have 50K in my TSP, due to taking care of all my other "stuff". Would you recommend for me to cash out my TSP fund a few months before I turn 62, since it's only a small amount, and wouldn't offer very much each month on it's own?
Can you do a video on alternatives to FEP BCBS standard and basic? Where I live in Arizona many of the doctors are dropping out of the plan or refusing to take on new patients with it. Also in 2023 they starting charging for basic labs. So I need a new plan for 2024 but it’s overwhelming finding one.
Why should there be a benefit to me, giving away my money? Child tax credit, I didn't tell you to have a child that you could not pay for. And why does the man get to stay home for months and get paid because his wife had a baby ? They should give this money to veterans. Or they should pay Government employees what they promised them when they were hired when they retire.
Increasing tax rates are the reason I rolled over my 401k to a Roth. I don’t want to be 59 paying taxes on current income on withdrawals made from my retirement account.
Pre-tax contributions may help reduce income taxes in your pre-retirement years while after-tax contributions may help reduce your income tax burden during retirement.
Both have their perks but you can also save for retirement outside of a retirement plan, such as in an individual investment account or employing the services of a retirement planner/investment advisor.
I have thought about it, but haven't figured out how to get consultation, I don’t live in a big city.
Have you searched? Use any investor/advisor tool. Look for Monica Mary Strigle I am close to retirement with 1.4 M to my name outside of retirement accounts. I hired her services 3 years ago, she contributed immensely to my portfolio progress.
What is her fee structure like? Are her services available to about anyone? Can you share more details?
This was very helpful. I have been wanting to take a small withdrawal to do some home renovations and now I have a better understanding on how much to take without bumping up my tax bracket. Also, I wasn't thinking about the Medicare Part B premiums, so this video was super helpful. Thanks!
My plan is to take out the amount that when combined with FERS and SS keeps me in the current 12% tax bracket. Even if I don’t need that much because it is better than having to make a 22% withdrawal for some need.
It is interesting to listen the the whole hoopla about Traditional/Roth TSP, if you look at your taxes you are most likely going to be in the same or LOWER tax bracket in retirement and can live just fine especially if you retire with a paid off house and no debts. I'd rather max out the HSA with a HSBA and have all of that tax free medical money that continues to grow even after contribution end when Medicare begins. Plus, "You can even use your HSA to pay for some Medicare expenses including your Medicare Part B, Part D and Medicare Advantage plan premiums, deductibles, copays and coinsurance"
I retired at 55 the rule of 55 law is like a miracle, the bureaucrat that came up with it was a genius. Just say’n sometimes those goofballs get it right. 🏆🤫🏆
I guess I need to google "The rule of 55" and find out what that means.
I was waiting on him to flip that board to reveal a F around and Find out graph 😂.
Great information.. thank you for your continued support! ☺️
You are greatly appreciated.
You always have good information.
When I turned 70 I was required to monthly withdraw X amount….it still is holding up well.
Part of my TSP is ROTH. Can I designate my large withdrawl to be from the ROTH balance? That income would be tax free, right?
Great info, thanks!
Hans I am 66 will be 67 on November 23 I am retired and want to transfer my traditional Roth over to a Roth conversion will that be a good ideal I don't have a lot but I want to transfer it over. Or should I leave where it is at until I am 70. Thank you so much.
Most federal retirees will be in a lower tax bracket in retirement than during their working period. If I retire after 30 years of federal service and collect Social Security at 62 .. I will earn only 50 % of my salary. I will need a ton of money in my TSP to = 100 % of my salary. Most retirees will see about 50-80 % of their salary in retirement thus will be in a lower tax bracket in retirement anyway ... and SOC , Medical deductions won't be needed.
You get ss at 62 so you get 33 percent of your salary there. Tsp is fir the other 20 percent
Hey Dallen, great information. Thanks! I withdrew 65k while working from trad TSP with 20% off the top. I'm going to be in a higher tax bracket for that. How long does the new text bracket last? Indefinitely? thanks!
Just for that year’s taxable income. Each year whatever level of taxable income you have determines your tax bracket anew
Are the taxes coming out of Traditional TSP, earned income, or ordinary income?
@@danielvelez7460 Once retired it's considered retirement income (similar to a 401k) and is subject to ordinary income tax brackets.
How did you withdraw 65k while working? A loan?
@@itguru2037 At age 59.5 you are allowed to withdraw amounts up to four times a year while working
I really enjoyed this episode! One question: I have a couple of pensions that I already receive (really good and equal to my current salary). I'm retiring at age 62 next year and only have 50K in my TSP, due to taking care of all my other "stuff". Would you recommend for me to cash out my TSP fund a few months before I turn 62, since it's only a small amount, and wouldn't offer very much each month on it's own?
Can you do a video on alternatives to FEP BCBS standard and basic? Where I live in Arizona many of the doctors are dropping out of the plan or refusing to take on new patients with it. Also in 2023 they starting charging for basic labs. So I need a new plan for 2024 but it’s overwhelming finding one.
Why should there be a benefit to me, giving away my money? Child tax credit, I didn't tell you to have a child that you could not pay for. And why does the man get to stay home for months and get paid because his wife had a baby ? They should give this money to veterans. Or they should pay Government employees what they promised them when they were hired when they retire.
WOW! You sound bitter.
ANyone that wants a tax deduction send me $10,000 and I'll send you back $2200 assuming your in the 22% tax bracket..