In other words, there's a lot of planning that must go into a retiree's tax strategy.
Surfergin, a lot depends on your tax rate and the size of your IRA. There is nothing wrong with taking money from your IRA first (we have a story on our Web site on why this could be a good idea!). For one thing, you can take money from your IRA up to the size of your tax deductions, and that will give you tax-free money. Also, it could reduce the size of your future IRA and reduce your required distributions after age 70 1/2. But it's also nice to allow the tax-deferred pot to grow.
Alright, here's our next question from RL.
Duffer, we'll get to your question next.
There are techniques to pass on holdings while reducing your tax bite. Family limited partnerships could be one way. But whether it's an FLP or a generation-skipping trust, it's all very complicated. I would see an estate planning lawyer and get some advice.
Alright, here's the next question from Duffer.
Enjoyed it...thanks for joining us!
Surfergin, a lot depends on your tax rate and the size of your IRA. There is nothing wrong with taking money from your IRA first (we have a story on our Web site on why this could be a good idea!). For one thing, you can take money from your IRA up to the size of your tax deductions, and that will give you tax-free money. Also, it could reduce the size of your future IRA and reduce your required distributions after age 70 1/2. But it's also nice to allow the tax-deferred pot to grow.
