Sentences with phrase «are in a lower tax bracket after»

To be in a lower tax bracket after retirement or who don't qualify for a Roth IRA due to income level.

Tax Advantages: Because you only pay on your variable annuity at the time of withdrawl, it's possible you'll be in a lower tax bracket after you retire, thus decreasing your tax burden.

When you add that to normal income tax, many seniors are in 40 - 70 % tax brackets, so don't just assume you will be in a lower tax bracket after you retire.

It's often better to go with a Traditional IRA if you pay a lot in taxes now and think you'll be in a lower tax bracket after retirement.

In general, you should go with a Traditional IRA if you think you'll be in a lower tax bracket after you retire.

Not exact matches

Although municipal bond yields are generally lower than taxable bond fund yields, some investors in higher tax brackets may find they have a higher after - tax yield from a tax - free municipal bond fund investment instead of a taxable bond fund investment.

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As an added bonus, if you sell after you retire, you may be in a lower tax bracket than you are when you are earlier in your investing career.

After all, if for some reason I don't end up being in a lower tax bracket during retirement, I suppose it will be a good problem to have.

Although tax - exempt bonds might have a lower interest rate than taxable bonds, if you're in a high tax bracket, your after - tax rate of return might be higher.

Since the Roth IRA is funded with after - tax money, it makes sense to pay taxes on the money when you are in a lower tax bracket.

When you convert, you'll have to pay income taxes (as you're moving from a pre-tax contribution account to an after - tax one), but since you're in a low - income tax bracket for the moment, you'll be paying as few taxes as possible.

I will likely be in a lower income tax bracket with the distributions after retirement (I'm 39), so do you recommend I avoid the Roth option?

I was wondering if it is a valid retirement strategy [after retiring] to withdraw the first couple lower tax brackets worth of income from the taxable traditional 401k thus taking advantage of lower rates, and then switching over to withdrawing from the tax - free Roth 401k for income that would normally be in the higher brackets and thus taxed at a higher rate.

But a traditional deductible IRA may be a better tool if you want to lower your yearly tax bill while you're still working (and probably in a higher tax bracket than you'll be in after you retire).

That holds out the potential for even further gains, and the possibility of paying less tax on your capital gains if you sell after you retire, when you may be in a lower tax bracket.

This strategy is best carried out when you are temporarily in a low tax bracket perhaps because you are between jobs or if you expect to be in a higher tax bracket in the future, as is the case sometimes with retirees who may have the RMD from their IRA after the age of 70 1/2.

Depending on your income, you may be in a lower or higher tax bracket after you retire.

Give this information, is it better to have 401k pre-tax which would mean the person pays less taxes in US, and when withdrawn after retirement assuming the tax bracket will be lower so, the withdrawl would also attract less tax penalty.

Assuming, however, that our investor will retire in a lower tax bracket — say, 30 % — the actual value of his RRSP would be $ 700,000 after accounting for taxes.

If you wait to withdraw your money from this account until after you reach qualified retirement age (currently between 65 - 67) and you'll likely be in a lower income tax bracket and, therefore, pay fewer taxes on this money.

Under the old tax law, because the spouse receiving alimony or spousal maintenance is usually in a lower tax bracket after a divorce, more money stays with the divorcing couple rather than going to the Federal Government.

«Payments can be deferred until after retirement, when most people are in a lower tax bracket.»