Tax Planning

It’s easy to forget that the money in your 401(k), IRA and other tax-deferred retirement accounts do not all belong to you because taxes will be due and payable in the years you take withdrawals.  Now is the best time to think about how you will make your withdrawals as tax-efficient as possible.

The earlier you engage in tax planning, the more options you might have to reduce future taxes.

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Economic and political forces in the United States mean that there’s a potential for higher taxes in the future. The challenge for individual taxpayers will be to avoid being forced to participate in high tax rates to the extent they can.

Wheelhouse will provide a comprehensive retirement plan that will incorporate a strategy for addressing taxes, including: Assessing the taxable nature of your current holdings; determining ways to include tax-deferred or tax-free money in your plan; strategizing which tax category to draw income from first to reduce tax burden; and leveraging your qualified money to potentially leave tax-free dollars to your beneficiaries.

Questions to ask your Advisor:

Should I convert my retirement accounts to a Roth IRA before tax rates go up?

Should I realize any long-term capital gains now or wait until after tax rates go up?

Does my current “asset allocation” strategy ensure that my assets are held in the most tax-efficient accounts?

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The Next Step?

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