Taxes for Retirees

Income taxes are affected when you turn 65, go on Medicare, start your Social Security check, start drawing down your IRA, possibly need long term care, and leave money to your spouse or kids.

There are simple ways to minimize the tax of your estate—if you know the mechanics of how various assets are valued and the details of tax law. There is great value in consulting with an expert; mistakes are costly.

Questions we can answer

Taxes in Retirement

We are forward looking tax planners. Tax planning in retirement is balancing Social Security income, taxable IRA and 401(K) withdrawals, Roth IRA withdrawals, pension income, and withdrawals from regular savings to meet your income needs. Cardinal helps you find the balance that minimizes your total income tax paid.

Cardinal Lessons on Taxes

How Much Income Tax Do Retirees Pay?

Welcome to today's Cardinal lesson, where we look into a topic that's crucial yet often overlooked - navigating taxes in retirement. Contrary to common misconceptions, the tax landscape shifts significantly once you retire. This isn't your usual tax talk; it's about strategizing to pay less and keep more of your income once you hit retirement.

2024 Income Tax Brackets, Roth IRA Conversion

In today's episode of Cardinal Lessons, we are discussing the world of taxes. This video is a must-watch for anyone with traditional IRAs or 401(k)s, as we explore the concept of the IRS being your "silent partner" in these accounts. We're here to teach you how to minimize your tax obligations and efficiently manage your retirement savings. We will share invaluable insights on how to strategically "buy out" this silent partner, focusing on Roth conversions and the optimal use of tax brackets to ensure you pay the least amount of taxes over the lifespan of your money. Check out our video!

7 Worries – Retirement Planning

Welcome to our special video where we explore the essence of what we do at Cardinal. Our journey on YouTube started somewhat accidentally, but it's blossomed into a thriving community. Today, we focus on the core of our mission: addressing the seven critical worries in retirement. These worries aren't just about what keeps you up at night; they're about making informed decisions in pivotal areas of your retirement planning, often in your 60s, but sometimes earlier or later.

The 2024 Medicare Tax-IRMAA-High Income People

Welcome to our comprehensive guide on the 2024 IRMAA (Income-Related Monthly Adjustment Amount) changes and how they impact Medicare costs. If you're nearing 65, already on Medicare, or simply curious about how income affects Medicare premiums, this video is a must-watch!

Income Tax – Life Insurance, Annuity, Hybrid LTC

Today, Hans and Tom are discuss annuities, life insurance, and hybrid long-term care. Each of these financial products serves a unique purpose and has its own set of tax rules and benefits. It's crucial to understand how these products fit into your overall financial plan and how they can benefit you and your family. Always work with a trusted financial advisor to ensure you're making the most informed decisions for your personal circumstances. If you found this video helpful, be sure to hit the "Like" button, subscribe for more financial insights, and drop any questions you may have in the comments below. Thanks for watching!

Retirees Running Out of Money Late in Life

In today's episode, Tom and I dive deep into what many consider the greatest retirement fear: running out of money. It's the elephant in the room that many of our clients are hesitant to address initially, but it's a fear that dictates their behaviors, decisions, and overall retirement planning. Remember, the right knowledge can pave the path to a stress-free retirement. #RetirementPlanning #FinancialSecurity #AvoidingRetirementPitfalls

You Make a Lot of Money Tax (NIIT)

Today, Tom and I delve into the "you make a lot of money tax" as coined by a recent Wall Street Journal article. While this might be new to many of you, it's officially known as the Net Investment Income Tax (NIIT). In this video, we break down what NIIT is, why you might've paid it without realizing it, and the key income thresholds you should be aware of. We also present planning strategies to navigate and potentially minimize this tax, all in the context of comprehensive financial planning. Grab our detailed show notes below for a step-by-step guide, and don?t forget to check your 1040 to find out about your AGI! If you have questions or need guidance, feel free to reach out. Enjoy the video! #NetInvestmentIncomeTax #TaxPlanning #FinancialStrategy

Health Savings Account HSA + Medicare

Navigating Health Savings Accounts (HSAs) and Medicare can be complex. That's why we've created an in-depth video discussion on the ins and outs of managing your HSA alongside Medicare, uncovering some little-known benefits and potential pitfalls. Discover why an HSA might be more advantageous than a Roth IRA in certain circumstances, learn about eligible expenses, and get insights on how to avoid costly mistakes when signing up for Medicare. Whether you're a current HSA holder nearing the age of Medicare eligibility or a professional seeking to better guide your clients, this video provides critical knowledge. Click the link below to watch our video and unlock a smoother path to retirement. Let's unravel the complexities of HSAs and Medicare together! #HSA #Medicare #RetirementPlanning #FinancialWellness

2026 Income and Estate Tax Cut Sunset

A tax-free retirement at age 70 and beyond can be achieved through proper planning and investment strategies focused on two primary sources: Social Security benefits and Roth IRA Income Annuities. To maximize tax-free Social Security benefits, individuals should consider factors such as earnings history and the timing of claiming benefits. Delaying the receipt of Social Security benefits until age 70 can result in higher monthly payments that remain tax-free if combined income stays below the IRS threshold. Roth IRA Income Annuities can guarantee a steady stream of tax-free income for the life of one or 2 people. By converting a significant portion of retirement savings into a Roth IRA Income Annuity, individuals can ensure that their retirement income remains tax-free as the annuity payments are considered qualified withdrawals from a Roth IRA. Effective planning for a tax-free retirement involves accumulating wealth, minimizing tax liabilities, and utilizing tax-advantaged investment vehicles such as Roth IRAs. Working with a CFP can help optimize retirement strategies and recommend tax-efficient withdrawal plans. Watch the video!

Hidden Taxes?High Income Retirees

Stealth taxes, surtaxes, hidden taxes for high income retirees. The Medicare tax(IRMAA), tax on Social Security, and the investment income tax; many retirees learn about them when they are assessed. To understand and plan for these hidden taxes, you need to calculate your MAGI or Modified Adjusted Gross Income. You can pull your AGI or Adjusted Gross income from your tax return and modify it by adding back tax exempt interest you?ve earned. In the past, savvy retirees shifted their interest earnings to tax free bonds to avoid these stealth taxes; hence the Modified part. Income from Roth IRAs and life insurance cash value loans doesn?t enter in for MAGI. We make a business of advising retirees about this and many other issues affecting their retirement.

Seven Worries in Retirement Explained

The SEVEN WORRIES in retirement are Social Security, Medicare, Long-Term Care, IRA/401k, Retirement Income and Investment, Estate Planning, and Taxes for Retirees. Each of them require you to understand and deal with one or more federal & state agencies and programs. The Social Security Administration, Health & Human Services, IRS, State Tax Authority, State Insurance Department???.All SEVEN WORRIES come at you when facing retirement and they?re mixed together like alphabet soup! Lots of government regulations, decisions to make, acronyms, sales people???.Our business at Cardinal is making sense of the SEVEN WORRIES and helping you develop a strategy to deal with all SEVEN of them. We are licensed in 50 states and DC and serve clients by ZOOM and phone.

2023 Tax Rates & Brackets for Retirees

If you?re retired, your income comes from Social Security, and withdrawals from IRAs, you have a degree of control over which Federal Tax Bracket that you fall into: 10%, 12%, 22%, 24%, 32%, 35%, or 37%. When doing Income and Tax Planning, many clients withdraw enough from their IRA each year to fill up their current tax bracket or the next one. For a married couple filing jointly, the top income of the 22% bracket is $190,750 and the 24% bracket $364,200. In other words, they can do a Roth Conversion limited by the top of the bracket. Watch the video to learn more about Tax Planning!

The Cardinal Guide To: 62+ Taxes

Listen to learn:

Up to 85% of your Social Security can be taxed depending on your “other taxable income” in a given year. In 2021, if your combined income is above $25,000 as an individual, or above $32,000 as a couple, some of your Social Security check will be taxed. State taxes on Social Security vary, with some states completely excluding Social Security from state income tax and others taxing it as regular income.

Medicare applies a surcharge to higher-income beneficiaries. IRMAA, or the Income Related Monthly Adjustment Amount, is an additional tax charged on your Part B and Part D monthly premiums. In 2021, if you make over $88,000 as an individual, or $176,000 as a couple, you can be subject to IRMAA charges.

Purchasing long term care insurance has tax benefits. Not only are the benefits paid to you tax-free, but there is a way to deduct some of the premiums paid for long term care insurance.

IRAs and 401(k)s allow you to postpone income taxes, but you can’t avoid income taxes altogether. RMDs must start by age 72. RMDs increase your taxable income, and possibly increase your Social Security and Medicare taxes. Consider using a Roth IRA, or a Roth IRA conversion, to reduce your taxable income in retirement.

There are income taxes even in death. If you leave a traditional IRA or 401(k) to your heirs, they will have to pay the income taxes before they can use the money.