Renée Kennedy discusses how to prepare for taxes in retirement.
Listen to the interview on the Business Innovators Radio Network:
Taxes are an unavoidable part of life, but luckily, many options are available to help prepare for taxes in retirement. To ensure that people have the best possible plan in place for tax season, it’s important to start planning now.
Renée explained: “One of the best ways to prepare for taxes in retirement is to take advantage of various types of retirement savings plans, such as a 401(k), IRA, Roth IRA, Roth 401(k), SEP/SIMPLE IRA, or other accounts. Not only do these plans provide a way to save and accumulate money over time, but they also offer significant tax benefits. It’s important to understand the different implications with each type of account – some are tax-deferred, while others offer tax-free income.”
Another way to prepare for taxes in retirement is to take advantage of various tax benefits designed specifically for seniors. For example, the Savers Credit provides a tax credit of up to $1,000 annually for low and moderate-income workers saving for retirement. The Earned Income Tax Credit is available to senior citizens with limited incomes and other deductions like property tax exemptions or medical expense deductions that can help reduce annual taxes owed.
By considering each of these options when preparing for taxes in retirement, people will be able to get the most out of their savings and find ways to minimize their overall tax burden. It’s important to start planning now so they can be well-prepared come tax season.
With the proper guidance and foresight, individuals can create a comprehensive retirement plan that works best for their unique financial situation.
About Renée Kennedy
Renée Kennedy brings over 20 years of industry experience to the table. Her priority is always her clients and their financial stability, which is why she listens to their objectives and designs innovative, personalized strategies that meet their unique needs. Her focus is on customizing employee benefits plans for businesses to reduce or eliminate costs, while offering tax savings. She also specializes in life insurance strategies, 401(k) rollovers, and more to help individuals and businesses build tax-free retirements, secure long-term care and death benefits, and more.
At AAA Life Solutions, they always put clients first, with excellent customer service and up-to-date insurance strategies tailored to their individual needs. They do their due diligence to ensure that they make the right decisions for their clients, knowing that their choices will affect them for a lifetime.
Learn More: https://aaalifesolutions.com/
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