Episode 149: The Various Aspects of Tax Planning

In this episode of 'Retire with Style', Wade and Alex delve into various aspects of tax planning, focusing on strategies such as front-loading taxes, tax loss harvesting, and deduction bunching. They discuss the implications of tax filing status changes, particularly for surviving spouses, and the impact of the Secure Act on inherited IRAs. The conversation emphasizes the importance of strategic Roth conversions and planning for future tax rates, providing listeners with valuable insights into effective tax management in retirement. The discussion also highlights the potential benefits of front-loading taxes and the implications of the SECURE Act on retirement accounts. Listen now to learn more!

Takeaways

• Front loading taxes can increase after-tax wealth.


• Inherited IRAs have new tax implications post-Secure Act.


• Roth conversions can be beneficial for beneficiaries.


• Tax planning should consider future income levels.


• Understanding tax liabilities is crucial for inheritance planning. Consider front-loading taxes to take advantage of current rates.


• Tax loss harvesting can add value to portfolio management.


• Deduction bunching can maximize tax benefits from charitable contributions.


• Donor advised funds offer flexibility in charitable giving.


• Appreciated shares can be donated to avoid capital gains taxes.


• Increasing after-tax spending power is a key goal in tax strategy.

Chapters

00:00 Introduction to Tax Planning Conversations

05:12 Reasons to Front Load Taxes

08:01 Implications of Filing Status Changes

10:28 Embedded Tax Liabilities in Inheritance

12:39 Strategic Roth Conversions for Beneficiaries

14:51 Planning for Future Tax Rates

18:11 Tax Strategies for Retirement Planning

32:10 Maximizing Charitable Contributions

43:34 Future Tax Planning and Legacy Considerations

Links

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 

This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips