Assuming the nest egg is primarily annuities, 410K, IRA and ROTH IRA. What are some tax reduction strategies before entering RMD age in 10 years and also during RMD age?

[loufurut]

Assuming the nest egg is primarily annuities (maturity dates before and after RMD), 410K, IRA and ROTH IRA. What are some tax reduction strategies before entering RMD age in 10 years and also during RMD age?

[K M W]

Doing some tax planning now when you have 10 years before you have to take Required Minimum Distributions (RMD) gives you time to strategically leverage future taxable income. There are a lot of options to consider, such as converting IRA funds to a Roth IRA, looking into annuities, and making decisions on when is the best time to start collection Social Security.

Unfortunately there is no "one size fits all" answer to this question.  The best strategies for you may not be the best strategies for someone else, as effective tax planning shoud consider all aspects of your unique situation, such as your filing status, if you itemize or take the standard deduction, whether you have dependents that may not be dependents in the future, whether increased income might make you ineligible for certain tax credits, what is the impact on your social security benefits if you start collecting early, at full retirement age, or defer for a perod of time, etc. 

I would strongly suggest that you work with a professional to project your annual income, taxes, and cash needs for the next 5-10 years, factoring in when you plan to start Social Security and when RMDs begin. This will help determine the best stategies that fit your situation.

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