Wondering how much money to contribute to your retirement from a tax perspective? Dr. Friday shares strategic advice on managing your funds when you inherit an IRA. If you are required to take annual RMDs but are still working, you can potentially create a tax-efficient solution. By maximizing contributions to your personal 401(k), you could offset the income from those RMDs, achieving a nearly zero tax effect. This strategy helps you save on taxes while keeping your retirement investments robust. For personalized tax assistance, call 615-367-0819.
Transcript:
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
How much money should I be putting into my retirement? And again, I am not a financial planner, so I am not going to tell you from the financial planning point. From the tax point, I can tell you. Sometimes certain things happen. Let’s say you inherit an IRA, yet you still work. So you’re mandated to take RMDs, or Required Minimum Distributions, from that inherited IRA, and you only have 10 years to cash it out. So maybe you should be maximizing your personal 401k, taking that money out of one end, putting it in the other. Theoretically, a zero tax effect, people. That’s a great way to keep money in your pocket. If you need help, 615-367-0819.
You can catch the Dr. Friday Call-In Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7. WTN.