Retirees Overpay Taxes on $300,000-Plus Savings by Using Uncoordinated Withdrawal Strategies
Updated
Updated · KSL.com · Aug 4
Retirees Overpay Taxes on $300,000-Plus Savings by Using Uncoordinated Withdrawal Strategies
1 articles · Updated · KSL.com · Aug 4
Summary
$300,000-plus savers can overpay taxes in retirement not because they saved too much, but because they withdraw from IRAs, 401(k)s, Roth accounts and brokerage accounts without a coordinated plan.
Wrong-order withdrawals can set off a chain reaction—taxing up to 85% of Social Security benefits, pushing retirees into higher tax brackets, raising Medicare premiums and increasing later required minimum distributions.
B.O.S.S. Retirement Solutions says retirement planning shifts from how to invest to where income should come from, with tactics varying by household, including brokerage-first withdrawals, heavier IRA draws in low-bracket years or partial Roth conversions.
The firm is offering a free retirement tax-savings analysis, arguing that long-term coordination of Social Security timing, RMDs, Roth conversions and account withdrawals can cut total taxes paid across retirement.