Is there a tax bomb hiding inside your retirement portfolio?
In this episode, Jeremy Keil speaks with David McClellan, Partner at Forum Financial Management, about how you can avoid the huge tax bills and Medicare surcharges that some retirees face. They explore how saving in tax-deferred accounts can lead to a growing tax liability in retirement, pushing retirees into higher tax brackets and affecting Medicare means testing. They highlight the importance of good financial planning to manage taxes over one’s lifetime. David also covers the potential tax liability that heirs may inherit from traditional IRAs and strategies to mitigate these tax risks.
David discusses:
- What the potential tax bomb in retirement portfolios is
- How tax-deferred accounts can lead to growing tax liability in retirement
- Why it’s beneficial to smooth out taxes over one’s lifetime
- How RMDs can snowball and result in large tax bills
- What Medicare means testing and the “widow tax” are
- How to minimize tax risks with Roth conversions and asset location
- And more
Related: Avoid These Mistakes: Securing the Right Retirement Path