In this episode of "Protecting and Preserving Wealth," Bruce and Jon discuss a counterintuitive approach: discontinuing contributions to traditional IRAs and 401ks. Drawing insights from IRA distribution expert Ed Slott, I challenge established retirement planning conventions. Slott is a recognized authority in IRA planning, is a professional speaker, best-selling author, and well-regarded by The Wall Street Journal and USA Today.
Slott's premise questions the conventional advice of maximizing contributions to tax-deferred accounts. His article in Investment News presents an alternative perspective, suggesting that lower retirement tax rates are not guaranteed. Instead, he argues that deferred withdrawals can lead to higher tax bills during required minimum distributions for those with substantial IRAs.
We delve into the implications of Slott's views, emphasizing the value of capitalizing on current lower tax rates. Slott's strategy recommends proactively reducing IRA balances through strategic withdrawals, aligning with lower tax rate periods for wealth transfer. Further discussion of The Secure Act 2.0's 10-year rule for beneficiaries prompts a reevaluation of wealth transfer strategies.
Throughout the episode, the focus remains on strategic tax planning, highlighting the potential of Roth accounts and Qualified Charitable Distributions (QCDs) to optimize retirement income and minimize tax burdens.
The episode concludes by encouraging listeners to contemplate Slott's insights as a catalyst for informed financial planning and seek advice from professionals.
Link to Ed Slott's article: https://www.investmentnews.com/stop-contributing-to-iras-and-401ks-240215
For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/
Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.
For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/
Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia
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