Ways to Use Tax Bracket Management for Smoother Retirement Income
Ready to pay less in retirement taxes? 🧐
Tax bracket management could be your secret weapon! Here are 3 powerful ways to smooth out your retirement income and avoid costly surprises:
1️⃣ Strategic Roth Conversions – Convert portions of your traditional IRA to a Roth when you're in a lower bracket. This can help lock in lower taxes and set you up for future tax-free withdrawals.
2️⃣ Timing Capital Gains – Plan asset sales in years when your income is down to benefit from lower capital gains rates and avoid pushing yourself into a higher bracket.
3️⃣ Multi-year Distribution Planning – Map out withdrawals from taxable accounts, IRAs, and Roths over several years to fill lower brackets and avoid sudden jumps in taxable income.
Retirement doesn't have to mean unpredictable tax bills. With the right strategy, you could keep more of what you've earned.
Curious how tax bracket management could work for your unique income? Follow @sentient_financialLLC for more advanced tax-saving strategies!
