Download The Findit App

Share Your Posts On These Major Social Networks

Instatag Your Posts to Instagram Facebook + Twitter

News

Tax Free Retirement Income Sources

Paying Less Taxes Could Define A Successful Retirement

Leawood 1/3/2017 11:00:00 AM

There are basically four tax-free income sources to consider for any retirement plan: HSA Account, Roth IRA, Reverse Mortgage and Cash Value Life Insurance.

HSA Accounts are health savings accounts for qualified medical expenses and some premiums like Medicare and Long Term Care. The contributions into a HSA Account are tax deductible, any earnings are tax deferred and tax free distributions, again, for qualified medical expenses. There’s also an additional opportunity to transfer a one-time amount from your IRA to your HSA account tax-free.

Roth IRA withdrawals are tax free with a few provisos. There’s no tax deduction for contributions, but earnings in the policy accumulate tax deferred. Roth IRAs can be an option for mutual funds, ETFs and annuities.

Cash Value Life Insurance can distribute tax-free policy loans from a TAMRA compliant contract that is kept in force for the life of the policy insured. The basis in the policy can be withdrawn tax free at no cost to the policy owner. There’s no tax deduction for contributions, but earnings in the policy accumulate tax deferred.

Reverse Mortgage generates tax-free equity loans from your home as long as you are at least age 62, the home is your primary residence and you remain in the home for the life of the reverse mortgage. (There are maintenance requirements as well.) There’s no interest deduction from a tax point of view.

The tax-free income from these sources is not included in the provisional income test from taxation of Social Security benefits. It is conceivable that tax deductions and exemptions could offset Social Security income for some retirees. Add to that the tax-free income sources described above and (under current law) you could design a tax-free retirement.

More News

https://s3.amazonaws.com/findit-pictures/300728/b624433c-ef16-4795-9611-95e50355092f.jpg

Building A Financial Profile

Creating cash flow every month isn’t an accident; it’s a deliberate act of spending wisely and saving for the future. Many consumers look to engage a professional adviser, because for most, managing your finances is not a do-it-yourself activity. ...

Released On: 1/21/2017
Views: 2785

https://s3.amazonaws.com/findit-pictures/300728/ba32b972-59d1-4bf4-81c8-9db8dd251094.jpg

Lazy Money Isn’t Working for You

Money market funds, CDs and savings accounts were the safe money havens of the past. But today, they’re crediting rates are so low, taxable and eroded by inflation. You worked hard for your money, so you need to make your money work hard for you. ...

Released On: 1/20/2017
Views: 2846

https://s3.amazonaws.com/findit-pictures/300728/e23370a2-a23e-4e15-821a-5ce82eed2685.jpg

Is Your Money Searching for Sanctuary?

After the market meltdown of 2008, investors and savers alike want to have safe alternatives for portions of their money. Many near or in retirement just can’t afford another major downturn in the market, so conservative options need to be sought ...

Released On: 1/19/2017
Views: 2834

https://s3.amazonaws.com/findit-pictures/300728/7d2985cd-ff85-4b35-967c-c1e8c8998148.jpg

Tax Payers Need to Become Gamers of the Tax System

It doesn’t matter what game you like to plan, there are strategies and tactics to learn to become successful at any sport. The same is true of tax code. There are three basic moves to make that can positively affect the taxes due on your 1040. Wa ...

Released On: 1/18/2017
Views: 2350

https://s3.amazonaws.com/findit-pictures/300728/60852a9b-e5a1-4db9-8015-a44dddbb1101.jpg

Understanding Your Psychonomics Risk Could Change the Way You Invest

Every investor should have a financial profile that includes a risk-tolerance assessment, timeline goals and a retirement or estate strategy. It becomes the reference point for all your money decisions and any plan alterations that will occur. Wa ...

Released On: 1/17/2017
Views: 2298

https://s3.amazonaws.com/findit-pictures/300728/6edfb8f5-86b5-4d0e-a709-24ec003ba3e1.jpg

Why Does Full Disclosure Seem So Elusive for Investors?

It’s really troubling in the information age an investor can’t seem to secure the true cost of their investments or consulting advice. Even when you Google—the front of all knowledge—most financial products disclosures don’t reveal the total cost ...

Released On: 1/16/2017
Views: 2493

https://s3.amazonaws.com/findit-pictures/300728/4db3e256-d3bc-49f2-829b-73338bc14dc6.jpg

Elder Care Costs in Retirement

Elder care in retirement is the greatest economic threat to seniors. Medical expenses and long-term care costs can exceed $220,000 for a married couple during their golden years, and living longer could increase the costs even further.

Released On: 1/14/2017
Views: 2642

https://s3.amazonaws.com/findit-pictures/300728/37f4951b-fbf5-4ba1-b286-70943c3072a6.jpg

Take-Home Pay is the Net Effect of Retirement Income

The number-one concern of retirees is they may be outliving their money, but their number-one compliant is paying taxes during retirement. Focusing on taxes needs to be coordinated with the purchase investment products to determine investor suita ...

Released On: 1/13/2017
Views: 2399

https://s3.amazonaws.com/findit-pictures/300728/25558c4c-7cc2-45b3-99e1-de5d90384121.jpg

Required Minimum Distributions on Qualified Retirement Plans

Most retirees don’t focus on required minimum distributions. Some don’t even know what RMDs are. Only a few seniors have a handle on them and are aware of the penalties for not complying with the laws that govern RMDs.

Released On: 1/12/2017
Views: 2526

https://s3.amazonaws.com/findit-pictures/300728/37e3bb8b-c1b3-441b-bd93-5c964ef52c24.jpg

Real Income Advisors Are Rare in Retirement Management

Retirement income just not just triggering a lifetime annuity and just setting it and forgetting it. Portfolio income needs many investment positions to generate retirement income to age 100.

Released On: 1/11/2017
Views: 2393

https://s3.amazonaws.com/findit-pictures/300728/88c559fe-f691-412f-832e-cb669f9bdeac.jpg

Can the Way Advisors Are Paid Cause Conflicts of Interests?

It is impossible to be in the advisory business, be altruistic and be profitable? Is there such an inherent conflict of interest between advisor and investor that the compensation models that exist today need to be scraped? The Department of Labo ...

Released On: 1/10/2017
Views: 2253

https://s3.amazonaws.com/findit-pictures/300728/fe105c94-bcce-4689-ac25-23f51681b919.jpg

If Returns Are Not Worth the Risk, Why Buy and Hold?

Many modern portfolio proponents use the risk-return theory of the efficient frontier to measure market returns against risk exposure. The goal is to optimize returns with the least amount of risk. If portfolio performance falls below the efficie ...

Released On: 1/9/2017
Views: 2462

https://s3.amazonaws.com/findit-pictures/300728/4898510f-d9ee-4858-a175-cd3b8f5aa719.jpg

The Home Equity Conversion Program

More than ever, seniors in or near retirement are struggling to create a reasonable lifestyle in their golden years. Many have mortgages, short debt and family obligations, such as long-term care costs for their aging parents and unpaid college l ...

Released On: 1/7/2017
Views: 2571

https://s3.amazonaws.com/findit-pictures/300728/d33a746d-4b5b-4141-8a38-c84831111c98.jpg

Protect Your Retirement Lifestyle from Elder Events

Sooner or later most seniors will experience some type of morbidity or illness event during retirement. Some retirees live in single story homes, with limited or no steps at all. Walk-in bathtubs, nonskid tile and support bars can help, but they ...

Released On: 1/6/2017
Views: 3006

https://s3.amazonaws.com/findit-pictures/300728/ffd23442-8bd5-4fe0-9782-9c1e938e0f3b.jpg

Social Security & Medicare in Retirement

You’re probably being pummeled with Medicare literature in the mail, but what’s really covered? The topic is overwhelming, thanks to the complicated coverage policies. Watch the interview with retirement specialist Curt Chojnowski.

Released On: 1/5/2017
Views: 2436

https://s3.amazonaws.com/findit-pictures/300728/cd9387fa-ed3b-4c15-8b8a-4ce737e06237.jpg

Tax Free Income from Cash Value Life Insurance

Depending upon your risk tolerance and the state of your health, you may want to consider TAMRA compliant cash value life insurance designed for accumulation and not necessarily as a death benefit.Watch the interview with retirement specialist Cu ...

Released On: 1/4/2017
Views: 2370

https://s3.amazonaws.com/findit-pictures/300728/e1a55381-438d-4b2f-9396-1f99e6374605.jpg

Tax Free Retirement Income Sources

Most seniors and retirement advisers focus on qualified plan monies. But there are non-qualified monies that could make the difference between experiencing retirement prosperity or retirement poverty. Watch the interview with retirement specialis ...

Released On: 1/3/2017
Views: 2320

https://s3.amazonaws.com/findit-pictures/300728/6e1e2bef-e787-40c3-aa02-b0e7dc486540.jpg

Worldwide Government Debt & Pension Obligations Out of Control

The nations of the world continue to print money, expand their governments and obligate their taxpayers with debt they can’t repay. The world economy is so interconnected, that when the first domino falls it will cause a rippling effect of a worl ...

Released On: 1/2/2017
Views: 3102

Load More wait

Map

Right on The Money

Get Directions

Right on The Money

  • 11460 Tomahawk Creek Parkway
    Leawood, Kansas 66211
    United States
  • 800.992.2642 ext 230
  • 8:00am CST - 5:00pm CST Monday through Friday