Keep in mind that the 50% and 85% limits are not tax rates. They simply reflect the maximum portion of your Social Security benefits that could be subject to tax. The taxable amount is then added to your other income and the regular income tax rates and brackets are applied. (A financial advisor may be able to help you plan for Social Security, and this free matching tool can help you find an advisor .)If your combined income is between $32,000 and $44,000, up to 50% of your Social Security benefits are tax ...

SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Do withdrawals from my pre-tax IRA and/or 401(k) accounts made before I turn 73 count toward my RMDs? Or do RMDs start at 73 without regard to prior withdrawals? I’m 70 now and still working and collecting Social Security, but plan to retire in 2024. – Luis Unfortunately, withdrawals from an IRA or 401(k) before age 73 do not count toward your eventual required minimum distributions (RMDs). However, you s ...

I’m 68, single and retired. I started claiming Social Security at 65 and my house is paid off completely. I have two fixed annuities: one for $300,000 at 5.5%, due to mature in 2026, and one for $100,000 at 4.5%, due to mature in 2028. RMDs are looming in five years when I will be 73. I don't need the money as I have CDs, stocks and savings. What advice can you give me regarding the two annuities to minimize taxes and ways to possibly reinvest the money. Thank you for your help in this matter and keep up th ...

Key Points Tax considerations with RMDs are especially important. Retirees should also evaluate when the best time is to take their RMDs. Reinvesting RMDs is often a smart move for retirees, but it isn't always the best approach. The $23,760 Social Security bonus most retirees completely overlook › What's the most critical age for retirees after their retirement date? A good case can be made for age 73. Anyone who has money in a tax-deferred retirement account such as a traditional IRA or a 401(k ...

Artem Varnitsin/Shutterstock Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. For many retirees, the holiday season is the perfect time to give back. And there’s one IRS-approved trick that can make that generosity go even further. A qualified charitable distribution, or QCD, is a direct donation from your IRA that can shrink your tax bill while helping your favorite charity. Must Read “It’s one of the IRS’ best-kept secrets for retirees,” Ashton Law ...

Converting your 401(k) to a Roth portfolio will allow you to entirely avoid RMDs. This is a legitimate form of tax planning. However, often there’s a difference between whether you can do something and whether you should; whether it’s allowed, and whether it’s in your long-term best interest. For example, say that you’re 62 years old. You have $1.6 million in a 401(k). If you convert this portfolio to a Roth IRA 10% at a time, you can avoid required minimum distributions on your $1.6 million. However, par ...

If I have a tax-deferred 401(k). Can I convert it to a Roth IRA without paying the deferred taxes when I roll it over? -Tommy Generally, the answer here is no. There’s typically no method to totally dodge taxes on a Roth conversion. Eventually, Uncle Sam will come to collect on your tax-deferred retirement accounts – either when you execute a Roth conversion, withdraw funds or collect your required minimum distributions (RMDs). That said, your inability to totally dodge taxes doesn’t translate to an inab ...

Required minimum distributions, or RMDs, are a problem for some retirees. If that’s your situation, a Roth conversion may be able to help. The advantage to switching your money from a pre-tax portfolio, like a traditional IRA, to a post-tax Roth IRA is an end to RMD concerns. Since you’ve already paid taxes on the money in a Roth account, the IRS does not require minimum withdrawals. The disadvantage is that you have to pay taxes up front, when you convert the funds. Depending on your tax situation, in t ...

You can use your traditional IRA’s required minimum distributions (RMDs) to contribute to a Roth IRA if you meet income requirements. https://t.co/ZUp2K1zGH0 ...

Key Takeaways The IRS released the 2026 federal income tax brackets, which apply to tax returns filed in 2027. Understanding your tax bracket can help you make smarter moves, such as when to do a Roth conversion and what your retirement withdrawal strategy should be. Experts suggest performing Roth conversions in lower-income years, which can reduce tax burdens for both you and your heirs. The Internal Revenue Service (IRS) just released the federal income tax brackets for tax year 2026 and everyon ...