Tax Tips for Retirement

If you’re like most people, then retirement is something that you greatly look forward to. With that said, however, retiring, especially if you’d like to retire early or to retire tax-free, is something that takes a great deal of planning.   

No matter what your retirement goals, having a financial adviser to assist you can be extremely helpful. There are also some simple tips you can follow, along with your financial adviser, to help you get to retirement sooner and with less of a financial burden to bear.

The Importance of Strategizing

First things first, if you want to retire comfortably, planning and strategizing as early on as possible are key.

Some great options for strategizing effectively include Roth IRAs, which, if used correctly, can make a tax-free retirement income possible. Another good option is selling one’s home, which can lead to a tax-free retirement gain of as much as $500,000 for couples filing jointly and $250,000 for single individuals.

Roth IRAs

As mentioned, Roth IRAs are a great way to plan and save for retirement.

With this option, you can f und your savings with after-tax funds, and any qualified distributions will not be taxed.

Furthermore, when you have a Roth account, you can withdraw income tax-free after you reach age 59 and a half or five years after your first contribution.

To learn more about the benefits of Roth IRAs or to get one set up, contact a tax professional to learn more.

Selling Your Home

It was also mentioned that selling your home can be an easy way to get some tax-free retirement income.

This is especially true if you have a high-value, large home. Odds are it’s going to be too big for you in retirement, so why not sell?

You can either sell your home ahead of time and invest the money, or you can wait and sell when you’re ready to retire.

Either way, you’ll have quick access to funds that can be well-used in retirement.

For help following these tips or for more great advice on planning for retirement, be sure to get in touch with a professional financial adviser.