Episode 165: Tax Planning Essentials for Retirees

In this episode of 'Retire With Style', hosts Alex Murguia and Wade Pfau delve into the intricacies of tax planning for retirement. They introduce the Retirement Income Challenge, discuss the importance of understanding tax impacts on retirement income, and explore strategies such as Roth conversions and gains harvesting. The conversation also covers the evaluation of 401k versus Roth 401k contributions, maximizing charitable contributions through Qualified Charitable Distributions (QCDs), and addressing listener questions, providing valuable insights for effective retirement planning. Listen now to learn more!

Takeaways

• The Retirement Income Challenge helps participants assess their retirement readiness.


• Tax planning is crucial for maximizing retirement income.


• Roth conversions can be beneficial, but gains harvesting at 0% tax rate is also a viable strategy.


• Understanding the tax implications of income sources is essential for retirees.


• Qualified Charitable Distributions (QCDs) can significantly reduce tax bills for charitable donations.


• The TaxMAT calculator workshop will provide practical tools for tax planning.


• Evaluating 401k versus Roth 401k contributions requires understanding long-term tax impacts.


• Medical deductions can be affected by income levels and tax planning decisions.


• Effective tax planning can help avoid higher tax brackets in retirement.


• Engaging with listeners through questions enhances the podcast experience.

Chapters

00:00 Introduction to Retirement Income Challenge

02:58 Exploring Tax Planning Strategies

05:55 Understanding Tax Impacts on Retirement Income

09:11 Roth Conversions vs. Gains Harvesting

12:02 Evaluating 401k vs. Roth 401k Contributions

14:51 Maximizing Charitable Contributions and QCDs

27:46 Listener Questions and Wrap-Up

Links

Purchase access to Wade's Retirement Researcher Academy Workshop, Using Tax Maps to Enhance Tax Planning Decisions! Sign up now for one-time fee of $99 to attend the Workshop live on 2/19/25 and have on-demand access to the recording: https://Retirement-Researcher.ontralink.com/tl/500

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

Register to attend Retirement Researcher's FREE 4-Day Retirement Income Challenge on March 10-13th from 12:00 - 2:00 PM ET each day: https://risaprofile.com/podcast 

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