Retirees potentially waste thousands of dollars every year to unnecessary taxation. Safe Harbor Financial Services can create tax efficient strategies to help you keep those dollars in your pocket rather than handing them over to the IRS.* We recognize that your retirement funds (IRA, 401k, 403b, etc.) represent your number one tax challenge, often leading to double taxation during your retirement years.
It comes as a big shock to many retirees that every dollar they withdraw from their IRA is taxed at some level. It’s prudent for individuals and families to try and tap into taxable assets first and leave tax-deferred assets alone to better manage tax liability. Being able to pull income out of tax-free sources — for example, a Roth IRA — is useful to help retirees control the amount of taxes they pay on Social Security benefits.
Retirees living off investment income (capital gains, interest and/or dividends) have different tax challenges. Returns on different types of investments are treated differently by the IRS with qualified dividends and capital gains taxed at a lower rate than ordinary income. Interest paid on bonds is generally considered taxable income except for municipal bonds; these are usually exempt from federal taxes.
We work with a tax consultant to utilize a number of proven, powerful strategies to help reduce your tax burden on your highest taxed asset – your retirement plan.
* Tax planning will be referred to a local accountant. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions.