Well, actually, I do, but I wanted to get your attention! No one wants to pay more taxes, but when facing retirement, everyone plays the guessing game – are taxes going to go up? Are taxes going down? How should I plan? And I have to say, based on government spending, our enormous national debt, and our aging population, we think taxes will definitely be going up.
Regardless of which way taxes go, we do know this: When you begin taking distributions from your 403 b, 401k, or IRA, you will have to pay taxes.
Since 401k plans have become popular and pension plans have almost disappeared, people have been socking their money into tax-postponement plans. The truth is it really doesn’t matter if you pay the taxes before you put it in or when you take it out; you will pay taxes. The unknown is how much you will be required to pay.
Here are a few points to remember when reviewing your plans:
- Everything in your plan does not belong to you, depending on the tax rate when you start withdrawing funds, as much as a third (Or more, who knows??) IS OWED TO THE GOVERNMENT. On every dollar you put in and every dollar of growth.
- You are required by law to take a “required minimum distribution (RMD). You must take your first RMD for the year you turn age 73. Even if you don’t need the money, the government wants to ensure they get the tax revenue from your nest egg. This often forces retirees into a higher tax bracket which can have a ripple effect. Many people do not realize that your income, including RMDs, can force you to pay taxes on up to 85% of your Social Security benefits.
- Your income determines how much you pay in Part B Medicare premiums. The minimum premium in 2024 is $174.40 per month, but based on income, it can be as high as $594.00 PER MONTH!
There is another, safer place to store your cash and build your wealth with ZERO risk that, unfortunately, many people are not aware of – it is implementing the Infinite Banking Concept (IBC). IBC uses high cash value, dividend-paying whole life insurance. These policies have numerous tax advantages and can be custom-designed to fit your goals and budget. You deposit after-tax money into your plan, it grows tax-free, and you can use it throughout your lifetime for ANY reason, without penalty, unlike a 401k plan! And with the policies we design, your money grows even when you use it for other purposes.
When you receive income from your policy, you do not pay taxes until you have exceeded the amount you have paid in contributions. This income is not included when the IRS determines your tax bracket and does not impact your Medicare Part B premium.
An IBC policy provides contractually guaranteed growth without the risk of other types of investments, like stocks and bonds.
An IBC policy offers liquidity, versatility, and peace of mind. Would you like to learn how to build a retirement income on which you could pay ZERO taxes? Let us show you how to create the perfect retirement plan for you!
