1 00:00:00,480 --> 00:00:03,600 Speaker 1: All these years you've saved up planning for a secure retirement, 2 00:00:03,640 --> 00:00:05,800 Speaker 1: but if you're not careful, it will be the irs 3 00:00:05,800 --> 00:00:08,200 Speaker 1: that is living it up when you retire by taxing 4 00:00:08,240 --> 00:00:11,360 Speaker 1: your hard earned money. Welcome to the Maggie Tax and 5 00:00:11,440 --> 00:00:14,640 Speaker 1: Financial Show with Robert and Chris Maggie of Maggie Tax 6 00:00:14,640 --> 00:00:18,239 Speaker 1: and Wealth Advisors. With over four decades of combined experience 7 00:00:18,520 --> 00:00:22,640 Speaker 1: and tax savings, income planning, and investment opportunities, Robert and 8 00:00:22,720 --> 00:00:26,360 Speaker 1: Chris share advice and tax planning strategies designed to protect 9 00:00:26,520 --> 00:00:29,800 Speaker 1: your retirement next day from Uncle Sam. Call them at 10 00:00:29,840 --> 00:00:33,880 Speaker 1: eight three three Maggie Tax or online at Maggie Tax 11 00:00:33,920 --> 00:00:36,800 Speaker 1: dot com. And now your host for the Maggie Tax 12 00:00:36,840 --> 00:00:39,680 Speaker 1: and Financial Show, Robert and Chris Maggie. 13 00:00:40,320 --> 00:00:42,519 Speaker 2: Welcome everyone, and thanks for joining us today. My name 14 00:00:42,560 --> 00:00:44,800 Speaker 2: is Robert Maggie and you're listening to the Maggie Tax 15 00:00:44,840 --> 00:00:47,159 Speaker 2: and Financial Show, and I'm here with my son and 16 00:00:47,240 --> 00:00:49,879 Speaker 2: co host Chris Maggie. Be sure to visit our website, 17 00:00:49,880 --> 00:00:52,400 Speaker 2: Maggie Tax dot com and give us a call at 18 00:00:52,400 --> 00:00:56,120 Speaker 2: eight three three Maggie Tax. Also every Sunday at ten thirty, 19 00:00:56,400 --> 00:00:58,680 Speaker 2: be sure to tune into the Maggie Tax and financial 20 00:00:58,680 --> 00:01:01,600 Speaker 2: show on ABC TV, and there's a lot of information 21 00:01:01,640 --> 00:01:04,440 Speaker 2: that we do there and we try to educate people. 22 00:01:04,840 --> 00:01:06,600 Speaker 2: We get questions all the time, and that's what we're 23 00:01:06,600 --> 00:01:09,720 Speaker 2: trying to address for every show. So it's the show 24 00:01:09,760 --> 00:01:13,560 Speaker 2: where we turn stress into tax confidence and help you 25 00:01:13,640 --> 00:01:16,320 Speaker 2: keep more of what you've worked so hard for. And again, 26 00:01:16,360 --> 00:01:18,280 Speaker 2: these questions come up every week, so if you have 27 00:01:18,319 --> 00:01:20,959 Speaker 2: a question, let us know. But today we're going to 28 00:01:21,000 --> 00:01:24,200 Speaker 2: talk about one of the most overlooked and most expensive 29 00:01:24,680 --> 00:01:30,080 Speaker 2: retirement rules out there. It's called required minimum distribution or 30 00:01:30,160 --> 00:01:35,160 Speaker 2: better known as R m D not DMR. So Chris 31 00:01:35,160 --> 00:01:37,000 Speaker 2: and I are going to talk about today and again 32 00:01:37,040 --> 00:01:39,240 Speaker 2: thanks for joining us today. Give us a call eight 33 00:01:39,360 --> 00:01:40,640 Speaker 2: three to three Maggie Tax. 34 00:01:40,800 --> 00:01:41,600 Speaker 3: Hey, welcome everyone. 35 00:01:41,640 --> 00:01:44,120 Speaker 4: I'm Chris Maggie and thanks again for tuning in. We 36 00:01:44,240 --> 00:01:46,959 Speaker 4: love being here because we provide education to help people. 37 00:01:47,360 --> 00:01:49,880 Speaker 4: We call it the Maggie Plan, a plan that consists 38 00:01:49,920 --> 00:01:56,960 Speaker 4: of complete planning, tax planning, income planning, investment planning, transfer planning, 39 00:01:57,640 --> 00:01:58,280 Speaker 4: state planning. 40 00:01:58,320 --> 00:01:59,880 Speaker 3: These are things that we talk about. It's complete plan. 41 00:02:00,080 --> 00:02:02,640 Speaker 4: We had a client that came in last weekend. He 42 00:02:02,720 --> 00:02:06,480 Speaker 4: wanted to pay lesson tax and he also wanted to 43 00:02:06,520 --> 00:02:09,760 Speaker 4: make sure his investments are online to his strategy, and 44 00:02:09,800 --> 00:02:12,120 Speaker 4: he said, well, you can do both, and we showed 45 00:02:12,160 --> 00:02:13,960 Speaker 4: them what we do and he said, that's where I 46 00:02:13,960 --> 00:02:15,400 Speaker 4: want to work. I want to work with you guys, 47 00:02:15,400 --> 00:02:19,040 Speaker 4: because he sees the benefits of complete planning. And he said, 48 00:02:19,040 --> 00:02:20,600 Speaker 4: can you make sure that everything stays in the family 49 00:02:20,680 --> 00:02:23,280 Speaker 4: goes to my two daughters as well. Well, we can 50 00:02:23,320 --> 00:02:25,639 Speaker 4: set that up for you as well. So when you 51 00:02:25,680 --> 00:02:27,600 Speaker 4: pick up the phone and call us, let's put together 52 00:02:27,639 --> 00:02:30,079 Speaker 4: a complete plan for you. So you mentioned the word 53 00:02:30,120 --> 00:02:34,680 Speaker 4: require minimum distribution are mds. These are what they call 54 00:02:34,800 --> 00:02:39,000 Speaker 4: distributions from your qualified account. What's a qualified account? Well, 55 00:02:39,040 --> 00:02:42,600 Speaker 4: your IRA, your four one K, your thrift savings plan. 56 00:02:42,720 --> 00:02:47,080 Speaker 4: These accounts that you put money into over the years. 57 00:02:47,120 --> 00:02:49,480 Speaker 4: You get a tax deduction by putting money into it. 58 00:02:49,520 --> 00:02:52,560 Speaker 4: But guess what, when you start taking it out in 59 00:02:52,600 --> 00:02:55,360 Speaker 4: the future. It could be age seventy three or age 60 00:02:55,360 --> 00:02:58,440 Speaker 4: seventy five, depending on when you were born, you have 61 00:02:58,520 --> 00:03:01,600 Speaker 4: to pay tax on these day distribution, so they're recalled 62 00:03:02,040 --> 00:03:08,040 Speaker 4: required minimum distribution. So if you're nearing your seventies, already retired, 63 00:03:08,120 --> 00:03:10,480 Speaker 4: or helping a parent with their finances, this is a 64 00:03:10,600 --> 00:03:11,600 Speaker 4: must know information. 65 00:03:11,639 --> 00:03:12,280 Speaker 3: So let's dive in. 66 00:03:12,639 --> 00:03:17,560 Speaker 2: So rmds can quietly increase your taxes, raise your Medicare premiums, 67 00:03:17,560 --> 00:03:20,640 Speaker 2: which we'll talk about, and catch you completely off guard 68 00:03:20,720 --> 00:03:22,679 Speaker 2: if you're not prepared. And I can tell you a 69 00:03:22,720 --> 00:03:25,200 Speaker 2: lot of people aren't because when they call me and 70 00:03:25,200 --> 00:03:27,720 Speaker 2: they call Chris and they say, what about that DMR, 71 00:03:28,200 --> 00:03:31,440 Speaker 2: and that tells me that they don't understand it's RMD 72 00:03:32,080 --> 00:03:36,120 Speaker 2: required minimum distribution. So today we're breaking it down into 73 00:03:36,160 --> 00:03:40,080 Speaker 2: four simple, easy to understand segments. What rm ds are, 74 00:03:40,760 --> 00:03:43,840 Speaker 2: why they start at age seventy three, how they affect 75 00:03:43,880 --> 00:03:47,440 Speaker 2: your taxes, and most importantly, what you can do to 76 00:03:47,480 --> 00:03:49,840 Speaker 2: stay ahead of them. So let's get into it right now, 77 00:03:49,880 --> 00:03:51,839 Speaker 2: because this is a very important topic. 78 00:03:51,720 --> 00:03:52,080 Speaker 3: That's right. 79 00:03:52,120 --> 00:03:53,920 Speaker 4: So let's get started with the big question what exactly 80 00:03:53,960 --> 00:03:56,160 Speaker 4: is an RMD Because if you ever heard the return 81 00:03:56,200 --> 00:03:58,800 Speaker 4: requirement of distribution and thought that sounds like a gym 82 00:03:58,840 --> 00:04:02,000 Speaker 4: class I didn't sign up for, well you're not alone. 83 00:04:02,040 --> 00:04:04,320 Speaker 4: You know. When we look at this, many people are confused, 84 00:04:04,360 --> 00:04:05,960 Speaker 4: they're isolated, and they just don't know what to do. 85 00:04:06,040 --> 00:04:08,680 Speaker 4: But we provide the clarity and the confidence to help you. 86 00:04:08,800 --> 00:04:12,400 Speaker 4: So that's what we do. So our MD is basically 87 00:04:12,480 --> 00:04:14,360 Speaker 4: the IRIS looking in all those years that you were 88 00:04:14,400 --> 00:04:18,840 Speaker 4: super responsible by being a saver and saying, Okay, now 89 00:04:18,880 --> 00:04:21,840 Speaker 4: it's a time, friend, it's time to start sharing. And 90 00:04:21,880 --> 00:04:24,080 Speaker 4: you've had this tax break for so many years, you 91 00:04:24,240 --> 00:04:28,719 Speaker 4: enjoyed the growth, and now the IRS says it's their turn. 92 00:04:28,839 --> 00:04:31,480 Speaker 4: So what does that mean. They want the money, they 93 00:04:31,560 --> 00:04:34,240 Speaker 4: want the distribution to be tax and they want to 94 00:04:34,279 --> 00:04:36,960 Speaker 4: make sure they get their tax money on this Now 95 00:04:37,040 --> 00:04:39,200 Speaker 4: rules of change, we'll dive into this later on, but 96 00:04:39,720 --> 00:04:43,560 Speaker 4: these accounts are called tax time bombs. If you are 97 00:04:43,800 --> 00:04:49,239 Speaker 4: in your seventies, that's fine, you're approaching this distribution time. 98 00:04:50,000 --> 00:04:52,520 Speaker 4: But more importantly, if you're in your sixties or your 99 00:04:52,560 --> 00:04:56,520 Speaker 4: fifties listening today, you might want to have a different 100 00:04:56,760 --> 00:04:59,600 Speaker 4: a plan or approach moving forward with this account if 101 00:04:59,600 --> 00:05:01,400 Speaker 4: you currently you have one. So let's break it down. 102 00:05:01,920 --> 00:05:06,599 Speaker 4: Rmds are required minimum distributions or withdraw from certain retirement accounts, 103 00:05:06,880 --> 00:05:09,240 Speaker 4: and we're talking about iras and form and cays. In 104 00:05:09,320 --> 00:05:11,159 Speaker 4: four or three b's all these accounts where you've got 105 00:05:11,200 --> 00:05:13,360 Speaker 4: a tax break going in the IRS allowed your money 106 00:05:13,400 --> 00:05:16,400 Speaker 4: to grow tax deferred for many years, sometimes decades, but 107 00:05:16,440 --> 00:05:18,480 Speaker 4: the rmds are how they make sure that those taxes 108 00:05:18,480 --> 00:05:21,440 Speaker 4: eventually get paid. So that's what it is. You don't 109 00:05:21,480 --> 00:05:23,840 Speaker 4: get to choose if you take one. You only get 110 00:05:23,839 --> 00:05:26,960 Speaker 4: to choose how much. So once you reach the required age, 111 00:05:27,839 --> 00:05:30,720 Speaker 4: the withdrawal is mandatory, whether you need the money or not. 112 00:05:31,240 --> 00:05:32,960 Speaker 4: Even if your bills are paid and your savings are 113 00:05:32,960 --> 00:05:37,719 Speaker 4: comfortably situated, the IRIS still says take out the money 114 00:05:37,800 --> 00:05:40,680 Speaker 4: any way. It has to come out, and there's a 115 00:05:40,680 --> 00:05:43,280 Speaker 4: penalty if you don't, so continue, well the. 116 00:05:43,240 --> 00:05:47,080 Speaker 2: Amount that he saw. The amount is calculated using life expectancy tables, 117 00:05:47,560 --> 00:05:50,920 Speaker 2: so the IRS basically looks at your account balance and 118 00:05:51,120 --> 00:05:55,800 Speaker 2: uses a standard formula based on age and essentially estimating 119 00:05:55,839 --> 00:05:58,919 Speaker 2: how long you'll live and how quickly they want that 120 00:05:59,000 --> 00:06:01,440 Speaker 2: money because they want that much before you die. And 121 00:06:01,520 --> 00:06:03,400 Speaker 2: every year you have to take out more and more. 122 00:06:03,760 --> 00:06:06,800 Speaker 2: And there's no crystal ball needed, just math. And I'm 123 00:06:06,839 --> 00:06:09,120 Speaker 2: not sure what math they use, but they've got the 124 00:06:09,240 --> 00:06:11,680 Speaker 2: math down, and sometimes we don't get it, and we're 125 00:06:11,680 --> 00:06:14,520 Speaker 2: probably never going to get it. But sometimes it's math 126 00:06:14,560 --> 00:06:17,760 Speaker 2: that feels a little rude. And Chris, it's funny because 127 00:06:18,160 --> 00:06:21,520 Speaker 2: it's simple, but it's not because here's why when you 128 00:06:21,680 --> 00:06:23,719 Speaker 2: started working, you were allowed to put money into a 129 00:06:23,760 --> 00:06:25,960 Speaker 2: tax deferred account. Oh that was great, you've got a 130 00:06:26,000 --> 00:06:28,679 Speaker 2: tax deferral on the front end. But I asked this question, 131 00:06:28,720 --> 00:06:30,640 Speaker 2: how many of you can go back over the years 132 00:06:30,720 --> 00:06:34,200 Speaker 2: and see how much that you actually had tax deferred 133 00:06:34,560 --> 00:06:37,520 Speaker 2: and what kind of tax benefit did you get? And 134 00:06:37,720 --> 00:06:41,040 Speaker 2: now when you're starting to take it out, the amount 135 00:06:41,120 --> 00:06:42,720 Speaker 2: is taxable at what rate? 136 00:06:42,839 --> 00:06:45,279 Speaker 4: Chris, Well, that's the thing. It's a question mark tax rate. 137 00:06:45,360 --> 00:06:47,920 Speaker 4: We don't know and today we know the tax rates are. 138 00:06:47,960 --> 00:06:51,480 Speaker 4: But fast forward five years, seven years, ten years, fifteen years, 139 00:06:51,520 --> 00:06:53,960 Speaker 4: do we really know what the tax rates are going 140 00:06:54,040 --> 00:06:56,800 Speaker 4: to be? No. So that's why these are tax time 141 00:06:56,839 --> 00:06:59,480 Speaker 4: bombs that are ready to explode, and you have to 142 00:06:59,520 --> 00:07:01,919 Speaker 4: make sure that that you put them in the right situation. 143 00:07:02,120 --> 00:07:05,760 Speaker 4: So if you ignore the RMD, there's a penalty. And 144 00:07:05,800 --> 00:07:10,080 Speaker 4: it's no joke because skipping or underwdrawing the rm D 145 00:07:10,200 --> 00:07:13,440 Speaker 4: the requirement and distribution can result in a penalty up 146 00:07:13,480 --> 00:07:16,360 Speaker 4: to twenty five percent of the amount you should have taken. 147 00:07:16,960 --> 00:07:18,880 Speaker 4: So that's not a slap on the wrist. Years ago 148 00:07:18,880 --> 00:07:21,280 Speaker 4: it was fifty percent, I was twenty five. But that's 149 00:07:21,320 --> 00:07:24,000 Speaker 4: the irs. Basically saying, you know, we really meant it, 150 00:07:24,400 --> 00:07:27,080 Speaker 4: We really want you to take this distribution. So that's 151 00:07:27,120 --> 00:07:29,480 Speaker 4: why planning is important. When you when you visit our 152 00:07:29,480 --> 00:07:32,200 Speaker 4: website maggietax dot com, if you talk about that up 153 00:07:32,240 --> 00:07:36,360 Speaker 4: the upright hand corner, the retirement savings tax bahm, right, 154 00:07:37,040 --> 00:07:40,520 Speaker 4: what can they do? Because when you do this, for 155 00:07:40,800 --> 00:07:42,840 Speaker 4: when you enter your information in the how much IRIS 156 00:07:42,880 --> 00:07:44,880 Speaker 4: you have and the value, I want to show you 157 00:07:44,960 --> 00:07:47,239 Speaker 4: what you have to take out for the requirement and distribution. 158 00:07:47,320 --> 00:07:49,640 Speaker 4: This is so important. Many people meet with they have 159 00:07:49,680 --> 00:07:51,000 Speaker 4: no idea and they say, oh my gosh, this is 160 00:07:51,040 --> 00:07:53,840 Speaker 4: exactly what my advisors even show me, and then how 161 00:07:53,880 --> 00:07:55,400 Speaker 4: do we plan for it? But when you go on 162 00:07:55,400 --> 00:07:57,240 Speaker 4: a website, what do you need to do to get that? 163 00:07:57,360 --> 00:07:59,080 Speaker 2: All you got to do is put in your information 164 00:07:59,200 --> 00:08:01,280 Speaker 2: of the value of IRA or four oh one K 165 00:08:01,760 --> 00:08:03,960 Speaker 2: and be honest. I mean, you don't have to lie, 166 00:08:03,960 --> 00:08:05,640 Speaker 2: and if you want to, that's fine, just to see 167 00:08:05,680 --> 00:08:07,600 Speaker 2: what the numbers look like. But it's going to tell 168 00:08:07,600 --> 00:08:09,200 Speaker 2: you what tax bracket you're going to be in and 169 00:08:09,200 --> 00:08:11,640 Speaker 2: what you're going to wind up taking out at seventy three, 170 00:08:11,720 --> 00:08:14,200 Speaker 2: So think about it. I have millionaire clients come in 171 00:08:14,240 --> 00:08:15,960 Speaker 2: all the time because they've saved all their life and 172 00:08:16,000 --> 00:08:18,800 Speaker 2: they got very very good IRA's account. Now they got 173 00:08:18,800 --> 00:08:21,160 Speaker 2: a million dollars sitting in there, or they think they 174 00:08:21,200 --> 00:08:23,480 Speaker 2: have a million dollars in there, because when you start 175 00:08:23,520 --> 00:08:25,920 Speaker 2: looking at the tax and you're at the highest tax bracket, 176 00:08:26,280 --> 00:08:28,880 Speaker 2: what's the math, Chris, A million dollars minus what thirty 177 00:08:28,920 --> 00:08:29,600 Speaker 2: seven percent? 178 00:08:29,920 --> 00:08:31,280 Speaker 3: You don't have all of that, do you? 179 00:08:31,320 --> 00:08:34,120 Speaker 4: No, that's a lot of money that does earmarked for who, 180 00:08:34,240 --> 00:08:36,760 Speaker 4: Uncle Sam so, and the rest is going to you. 181 00:08:36,800 --> 00:08:38,200 Speaker 3: But that's at today's rate. 182 00:08:38,280 --> 00:08:40,600 Speaker 4: What if it changes between to forty two percent, what 183 00:08:40,640 --> 00:08:42,520 Speaker 4: it goes at the forty eight percent? What if it 184 00:08:42,559 --> 00:08:45,079 Speaker 4: goes up to fifty six percent? Then guess what less 185 00:08:45,120 --> 00:08:46,520 Speaker 4: to you, more to them. 186 00:08:46,720 --> 00:08:48,719 Speaker 2: So on the retirement tax bill, what we look for 187 00:08:48,760 --> 00:08:50,959 Speaker 2: there is what you're going to pay, and it gives 188 00:08:51,040 --> 00:08:54,120 Speaker 2: us an opportunity to show you strategically how to take 189 00:08:54,120 --> 00:08:56,960 Speaker 2: that money out over maybe three, five or seven years 190 00:08:57,200 --> 00:08:59,320 Speaker 2: at the lowest tax rate and then at the end 191 00:08:59,360 --> 00:09:01,680 Speaker 2: have all tax free money. So could you have a 192 00:09:01,679 --> 00:09:04,200 Speaker 2: million dollars of tax free money? Yes, if you do 193 00:09:04,240 --> 00:09:05,560 Speaker 2: it strategically and do it. 194 00:09:05,440 --> 00:09:08,679 Speaker 4: Correct, that's exactly right. So now you know what rmds are. 195 00:09:08,720 --> 00:09:13,200 Speaker 4: It's called the requirementium distributions or withdrawals. It's irs formulas 196 00:09:13,200 --> 00:09:16,320 Speaker 4: and penalties that you definitely want to avoid. You know, 197 00:09:16,320 --> 00:09:18,960 Speaker 4: they're not spooky, they're not personal, but they are something 198 00:09:19,040 --> 00:09:23,560 Speaker 4: that every retire needs to understand before they sneak up 199 00:09:23,600 --> 00:09:26,360 Speaker 4: on you. And that's why if you're fifty fifty five, 200 00:09:26,679 --> 00:09:30,240 Speaker 4: sixty sixty five, there are options where you could do 201 00:09:30,320 --> 00:09:34,480 Speaker 4: strategic rollouts, roth conversions, ways to get out of the 202 00:09:34,600 --> 00:09:38,000 Speaker 4: tax infected area where most people are. I mean, you've 203 00:09:38,040 --> 00:09:40,280 Speaker 4: did a great job, you say, for a long time. 204 00:09:40,640 --> 00:09:43,480 Speaker 4: You know, you did what everyone told you to do, 205 00:09:43,640 --> 00:09:48,600 Speaker 4: put money away into a form. Okay, but again these 206 00:09:48,600 --> 00:09:51,679 Speaker 4: are tax time bombs. But so this requirement of distribution 207 00:09:51,920 --> 00:09:55,880 Speaker 4: has to be taken. And what's really interesting that you 208 00:09:55,960 --> 00:09:58,400 Speaker 4: might be asking yourself why seventy three we're not seventy 209 00:09:58,760 --> 00:10:01,600 Speaker 4: or seventy five, or let's be honest, never Well, that 210 00:10:01,679 --> 00:10:03,960 Speaker 4: age didn't just come out of nowhere, and the rules 211 00:10:04,000 --> 00:10:06,319 Speaker 4: have changed more than once. Years ago was seventy and 212 00:10:06,360 --> 00:10:09,120 Speaker 4: a half, then it was seventy two. Now it's seventy 213 00:10:09,120 --> 00:10:12,440 Speaker 4: three and seventy five. So coming up next, we're going 214 00:10:12,520 --> 00:10:15,119 Speaker 4: to dive into this a lot more on these requirement 215 00:10:15,160 --> 00:10:19,040 Speaker 4: of distributions. Also these iras, how they're infected with taxes, 216 00:10:19,080 --> 00:10:22,280 Speaker 4: a tax time bomb waiting to explode, and many people 217 00:10:22,280 --> 00:10:24,839 Speaker 4: are on that avenue of just going down that lane. 218 00:10:24,840 --> 00:10:27,360 Speaker 4: You don't have to. We'll talk about how Congress landed 219 00:10:27,360 --> 00:10:31,000 Speaker 4: on that number, and most importantly, how timing can actually 220 00:10:31,120 --> 00:10:34,480 Speaker 4: work in your favor if you plan ahead, pick up 221 00:10:34,480 --> 00:10:36,400 Speaker 4: the phone, schedule time with us eight three to three 222 00:10:36,480 --> 00:10:45,400 Speaker 4: Maggie Tax. You listen to the Maggie Tax and Financial Show. 223 00:10:48,000 --> 00:10:51,520 Speaker 1: Stop funding Uncle Sam's retirement and start planning for your 224 00:10:51,600 --> 00:10:55,040 Speaker 1: own successful retirement. As we return to the Maggie Tax 225 00:10:55,120 --> 00:10:58,520 Speaker 1: Financial Show with your host Robert and Chris Maggie with 226 00:10:58,600 --> 00:11:01,760 Speaker 1: Maggie Tax and Wealth Advisor. For information on how you 227 00:11:01,800 --> 00:11:05,400 Speaker 1: can create a tax free retirement, call eight three three 228 00:11:05,800 --> 00:11:10,120 Speaker 1: Maggie Tax or visit Maggie Tax dot com. Now your 229 00:11:10,120 --> 00:11:13,920 Speaker 1: host with Maggie Tax and Wealth Advisors, Robert and Chris Maggie. 230 00:11:14,600 --> 00:11:17,080 Speaker 4: Welcome back to the Megi Tax and Financial Show. And 231 00:11:17,160 --> 00:11:20,439 Speaker 4: we've been talking about require minimum distributions. If you have 232 00:11:20,520 --> 00:11:23,120 Speaker 4: an IORA A four to one K, A thrift savings 233 00:11:23,160 --> 00:11:26,400 Speaker 4: plan A four to three B. Guess what your These 234 00:11:26,440 --> 00:11:29,760 Speaker 4: accounts are infected with taxes, so what are you doing? Well, 235 00:11:29,800 --> 00:11:33,960 Speaker 4: you have a tax time bomb that's waiting to erupt 236 00:11:34,000 --> 00:11:36,720 Speaker 4: at some point. And what's really interesting is that we 237 00:11:36,760 --> 00:11:38,400 Speaker 4: don't even know what tax rate it's going to come 238 00:11:38,400 --> 00:11:41,600 Speaker 4: out at. So if you have saved in these accounts 239 00:11:41,600 --> 00:11:44,080 Speaker 4: for so long, we're talking about when do you have 240 00:11:44,160 --> 00:11:47,720 Speaker 4: to start taking out? Years ago, the required minimum distribution 241 00:11:47,920 --> 00:11:49,839 Speaker 4: was aged seventy and a half or so long, and 242 00:11:49,920 --> 00:11:53,040 Speaker 4: it was seventy two, and now it's seventy three, and 243 00:11:53,080 --> 00:11:56,280 Speaker 4: also seventy five based on the year that you were born. 244 00:11:56,559 --> 00:12:00,160 Speaker 4: So why do R and ds start at seventy three? 245 00:12:00,320 --> 00:12:03,240 Speaker 2: Big question, confusing question, and we're going to try to 246 00:12:03,280 --> 00:12:06,240 Speaker 2: answer it for you. So here we go. Now that 247 00:12:06,280 --> 00:12:08,040 Speaker 2: we know that you know what R and ds are, 248 00:12:08,200 --> 00:12:10,840 Speaker 2: and if you don't remember one thing, it's not DMR. 249 00:12:10,920 --> 00:12:13,839 Speaker 2: Please don't say that it's an rm D. Let's talk 250 00:12:13,880 --> 00:12:15,680 Speaker 2: about the question I hear all the time, Why on 251 00:12:15,720 --> 00:12:18,680 Speaker 2: earth do they start at age seventy three? Not seventy 252 00:12:18,760 --> 00:12:22,079 Speaker 2: not seventy five, seventy three And no, it wasn't picked 253 00:12:22,120 --> 00:12:25,040 Speaker 2: out of a hat. This number has changed several times 254 00:12:25,400 --> 00:12:28,320 Speaker 2: and each change has everything to do with how long 255 00:12:28,480 --> 00:12:32,240 Speaker 2: we're living, how the government thinks about retirement, and believe 256 00:12:32,240 --> 00:12:35,640 Speaker 2: it or not, how much opportunity you actually have to 257 00:12:35,679 --> 00:12:39,520 Speaker 2: save on taxes. And this segment is important because understanding 258 00:12:39,559 --> 00:12:42,600 Speaker 2: why the age of seventy three helps you understand what 259 00:12:42,679 --> 00:12:45,719 Speaker 2: to do before rm ds start, and that can make 260 00:12:45,840 --> 00:12:49,000 Speaker 2: a huge difference in how much you keep versus how much. 261 00:12:48,840 --> 00:12:50,360 Speaker 3: You give to the irs. 262 00:12:50,480 --> 00:12:53,480 Speaker 2: So let's break it down into four simple ideas so 263 00:12:53,960 --> 00:12:57,400 Speaker 2: you can see exactly why rm ds start when they 264 00:12:57,400 --> 00:13:00,679 Speaker 2: do and what that timing really means mean for you. 265 00:13:00,800 --> 00:13:03,439 Speaker 4: Well, you know, simply, people are living longer than what 266 00:13:03,480 --> 00:13:06,760 Speaker 4: they used to. Right, So when our MD rules were 267 00:13:06,760 --> 00:13:09,920 Speaker 4: first created, life expectancy was much shorter, and today many 268 00:13:09,920 --> 00:13:12,440 Speaker 4: retirees are living well into their eighties and nineties. So 269 00:13:12,480 --> 00:13:16,400 Speaker 4: Congress adjusted the rules to better match today's longer retirement. 270 00:13:16,480 --> 00:13:19,520 Speaker 4: So it gives you gives your money more time to 271 00:13:19,640 --> 00:13:23,840 Speaker 4: work before withdrawals are required, which is a good thing, 272 00:13:23,920 --> 00:13:26,960 Speaker 4: but also too, it's a bad thing because the pot 273 00:13:26,960 --> 00:13:29,320 Speaker 4: gets bigger and bigger and bigger and bigger, which means 274 00:13:29,320 --> 00:13:31,640 Speaker 4: more tax down the line. See, the fact of the 275 00:13:31,679 --> 00:13:35,080 Speaker 4: matter is is that they know how much IRA money 276 00:13:35,120 --> 00:13:37,240 Speaker 4: is out there, they know how much is going to 277 00:13:37,280 --> 00:13:39,960 Speaker 4: be subject to tax. That's why we call legislative risk. 278 00:13:40,080 --> 00:13:43,320 Speaker 4: Legislative risk means that they can change the rules. So 279 00:13:43,400 --> 00:13:45,960 Speaker 4: if there's billions and billions and even more billions of 280 00:13:45,960 --> 00:13:48,360 Speaker 4: dollars out there later on, they know the tax revenue 281 00:13:48,400 --> 00:13:51,120 Speaker 4: that's going to come in. So the government wanted to 282 00:13:51,160 --> 00:13:53,719 Speaker 4: extend the tax deferred growth period, and that's why they did. 283 00:13:53,760 --> 00:13:57,840 Speaker 4: By pushing the rm DS start age back to seventy three, 284 00:13:58,000 --> 00:14:01,520 Speaker 4: lawmakers gave retirement accounts more time to grow without the 285 00:14:01,559 --> 00:14:05,560 Speaker 4: immediate taxation. But that extra year or two of tax 286 00:14:05,600 --> 00:14:08,320 Speaker 4: deferred compound they can make a meaningful difference in long 287 00:14:08,400 --> 00:14:09,079 Speaker 4: term savings. 288 00:14:09,120 --> 00:14:10,680 Speaker 3: And that's where we're going with this. 289 00:14:10,800 --> 00:14:15,160 Speaker 4: People, when you're at this age now seventy three seventy five, 290 00:14:15,200 --> 00:14:17,560 Speaker 4: you have to start taking the REQUIREMENTUM you need a plan. 291 00:14:18,120 --> 00:14:21,720 Speaker 4: But more importantly, if you're fifty sixty sixty five right 292 00:14:21,760 --> 00:14:25,440 Speaker 4: approaches seventy you need an exit strategy. And we can 293 00:14:25,480 --> 00:14:27,800 Speaker 4: show you how to exit these accounts the most tax 294 00:14:27,840 --> 00:14:28,560 Speaker 4: efficient way. 295 00:14:28,760 --> 00:14:30,200 Speaker 2: And if you really want to wake up call go 296 00:14:30,240 --> 00:14:33,160 Speaker 2: to our website Maggie Tax click on the retirement tax 297 00:14:33,200 --> 00:14:33,480 Speaker 2: Miill on. 298 00:14:33,480 --> 00:14:34,040 Speaker 3: The top right. 299 00:14:34,440 --> 00:14:36,520 Speaker 2: Put your numbers in, Well, ask you for the tax 300 00:14:36,960 --> 00:14:38,960 Speaker 2: bracket and I'll show you what you have to start 301 00:14:39,000 --> 00:14:42,080 Speaker 2: taking out. What Chris mentioned at fifty fifty five sixty, 302 00:14:42,120 --> 00:14:43,720 Speaker 2: You don't have to take it out to seventy three. 303 00:14:44,120 --> 00:14:45,880 Speaker 2: It will show you what you're going to have to 304 00:14:45,920 --> 00:14:47,800 Speaker 2: take out. We're going to get into that in a minute. 305 00:14:47,880 --> 00:14:50,080 Speaker 2: And then what it's going to do to your tax return. 306 00:14:50,200 --> 00:14:52,360 Speaker 2: Because you have Social Security, you have pension, it's going 307 00:14:52,400 --> 00:14:55,040 Speaker 2: to bring you in a higher tax bracket. And boy, 308 00:14:55,480 --> 00:14:58,120 Speaker 2: isn't that what the government wants to pay more taxes? Chris, 309 00:14:58,360 --> 00:14:59,160 Speaker 2: that's pretty simple. 310 00:14:59,280 --> 00:15:02,080 Speaker 4: Well, they need to revenue. And see, you think you're 311 00:15:02,120 --> 00:15:06,600 Speaker 4: saving for so long, but then you're not. You get 312 00:15:06,640 --> 00:15:07,960 Speaker 4: hit with an unknown tax act. 313 00:15:08,000 --> 00:15:10,520 Speaker 2: You're saving, you're saving for the irs retirement, you're not 314 00:15:10,560 --> 00:15:11,680 Speaker 2: saving for your retirement. 315 00:15:11,800 --> 00:15:13,840 Speaker 4: So that's why he wrote the book Stop funding Uncle 316 00:15:13,880 --> 00:15:15,080 Speaker 4: Sam's retirement exactly. 317 00:15:15,120 --> 00:15:17,000 Speaker 3: And that's people laugh but it's the truth. 318 00:15:17,040 --> 00:15:19,920 Speaker 2: Because the people out there that know what we're talking about, 319 00:15:19,920 --> 00:15:23,160 Speaker 2: that see this happening, they're chicking their head saying they're 320 00:15:23,240 --> 00:15:26,000 Speaker 2: right because I never saw this coming. But the Secure 321 00:15:26,040 --> 00:15:28,160 Speaker 2: Act two point zero and many of you don't even 322 00:15:28,200 --> 00:15:31,720 Speaker 2: know what the Secure Act is Modernize Retirement rules, because 323 00:15:31,960 --> 00:15:36,520 Speaker 2: this updated legislation recognize that retirement timelines have changed. What 324 00:15:36,600 --> 00:15:39,120 Speaker 2: Chris mentioned, you get an older It gradually moved the 325 00:15:39,160 --> 00:15:41,360 Speaker 2: starting age from seventy and a half to seventy two, 326 00:15:41,880 --> 00:15:45,120 Speaker 2: now seventy three, maybe seventy five, and who knows, with 327 00:15:45,280 --> 00:15:48,160 Speaker 2: plans to move it even later, even later, so that 328 00:15:48,200 --> 00:15:51,160 Speaker 2: you can accumulate more tax you know, deferred money, showing 329 00:15:51,400 --> 00:15:53,960 Speaker 2: that this number isn't fixed forever. So you've got to 330 00:15:54,040 --> 00:15:57,400 Speaker 2: understand the rules and what's going on. So the extra opportunity, 331 00:15:57,600 --> 00:16:00,280 Speaker 2: you know, the extra time creates a powerful planning. What 332 00:16:00,280 --> 00:16:01,720 Speaker 2: we're trying to tell you is that if you can 333 00:16:01,760 --> 00:16:05,000 Speaker 2: do a strategic rollout of your IRA, think about it, 334 00:16:05,320 --> 00:16:06,920 Speaker 2: and you think you have that much money, you're just 335 00:16:06,960 --> 00:16:09,440 Speaker 2: delaying the inevitable. So what you want to do is 336 00:16:09,520 --> 00:16:12,400 Speaker 2: do a strategic rollout and start taking the money out 337 00:16:12,400 --> 00:16:15,200 Speaker 2: over time. So the years leading up to age seventy 338 00:16:15,200 --> 00:16:18,680 Speaker 2: three are prime time for you. A proactive tax planning, 339 00:16:18,680 --> 00:16:22,880 Speaker 2: which is exactly what I'm talking about. Roth conversion, strategic withdrawals, 340 00:16:23,280 --> 00:16:27,160 Speaker 2: and income management strategies that can significantly reduce future RM 341 00:16:27,240 --> 00:16:30,040 Speaker 2: ds and overall tax stress and you know, Chris, every 342 00:16:30,080 --> 00:16:31,800 Speaker 2: time we sit down and show this to a client 343 00:16:31,880 --> 00:16:34,160 Speaker 2: that come in, they go, wow, I wish I would 344 00:16:34,200 --> 00:16:34,880 Speaker 2: have known that before. 345 00:16:34,920 --> 00:16:37,680 Speaker 4: Well you didn't because it wasn't there. Well that's the thing. 346 00:16:37,680 --> 00:16:39,600 Speaker 4: I mean, most advisors don't even talk about this. Most 347 00:16:39,640 --> 00:16:42,880 Speaker 4: advisors say, go to consult a tax advisor. Well, we're 348 00:16:42,880 --> 00:16:46,080 Speaker 4: not only just a tax advisor and tax planner. We 349 00:16:46,160 --> 00:16:50,040 Speaker 4: do investment planning and an investment planner. Investment advisor, that's 350 00:16:50,080 --> 00:16:53,200 Speaker 4: what we do, and we incorporate everything we could show 351 00:16:53,200 --> 00:16:54,680 Speaker 4: you how to get these accounts out of an infected 352 00:16:54,680 --> 00:16:57,880 Speaker 4: area tax to a tax free environment, because that's what 353 00:16:57,880 --> 00:17:00,240 Speaker 4: it's about. How many tax free buckets do you have? 354 00:17:00,680 --> 00:17:04,400 Speaker 4: Who wants to have taxable buckets? That portion is gonna 355 00:17:04,400 --> 00:17:06,080 Speaker 4: go to Uncle Sam. You don't have no idea. It's 356 00:17:06,080 --> 00:17:10,440 Speaker 4: like being in business with the partner and the partner 357 00:17:10,640 --> 00:17:14,320 Speaker 4: can change the rules of how much their share is. 358 00:17:15,080 --> 00:17:17,040 Speaker 4: Now stop for a minute. Do you want to be 359 00:17:17,119 --> 00:17:19,960 Speaker 4: in that partnership? I wouldn't want to, But that's what 360 00:17:20,040 --> 00:17:25,359 Speaker 4: you signed up for with a regular IRA TSP for 361 00:17:25,760 --> 00:17:29,320 Speaker 4: one K. Now, that's the problem because you have to 362 00:17:29,320 --> 00:17:31,840 Speaker 4: take these requirement and distributions. But why go into a 363 00:17:31,840 --> 00:17:34,040 Speaker 4: partnership like that when you don't have to? And we'll 364 00:17:34,040 --> 00:17:35,959 Speaker 4: talk about a lot more on the show on what 365 00:17:36,000 --> 00:17:38,320 Speaker 4: you could do. So when you hear age seventy three, 366 00:17:38,640 --> 00:17:41,720 Speaker 4: don't think of it as irs curveball, you know, think 367 00:17:41,760 --> 00:17:44,520 Speaker 4: of it as a little extra runway, because it's breathing 368 00:17:44,560 --> 00:17:46,960 Speaker 4: room right now for you. If you're younger than that, 369 00:17:47,359 --> 00:17:49,760 Speaker 4: it's planning time. And that's what we do here, planning. 370 00:17:49,960 --> 00:17:53,720 Speaker 4: There's tax preparation versus tax planning. Tax preparation is old news. 371 00:17:53,760 --> 00:17:56,840 Speaker 4: Tax planning is the future, and that's where our head thinks. 372 00:17:56,880 --> 00:17:59,000 Speaker 4: That's where our plans go. And if you use those 373 00:17:59,080 --> 00:18:01,359 Speaker 4: years wisely, they can make R and ds a whole 374 00:18:01,440 --> 00:18:03,880 Speaker 4: lot less painful down the road. But here's the part 375 00:18:03,880 --> 00:18:06,840 Speaker 4: that most people don't see coming. Once those requirement and 376 00:18:06,880 --> 00:18:11,080 Speaker 4: distributions actually start, they don't just show up quietly. They 377 00:18:11,080 --> 00:18:13,639 Speaker 4: can nudge up your tax bracket, they can affect your 378 00:18:13,640 --> 00:18:17,639 Speaker 4: Social Security. They even can bump up your Medicare premium. 379 00:18:17,720 --> 00:18:20,600 Speaker 4: So these are silent killers. So coming up next, we're 380 00:18:20,600 --> 00:18:23,400 Speaker 4: talking about the R and d's how it's coming out, 381 00:18:23,440 --> 00:18:26,520 Speaker 4: and also how the rm d's impact your taxes. You 382 00:18:26,560 --> 00:18:29,239 Speaker 4: don't want to miss this and why understanding that this 383 00:18:29,359 --> 00:18:33,040 Speaker 4: piece can save you serious, serious money. You're listening to 384 00:18:33,040 --> 00:18:35,240 Speaker 4: Magi Tax and Financial Show. Pick up the phone, schedule 385 00:18:35,280 --> 00:18:37,359 Speaker 4: time to meet with us. Eight three to three Maggie Tax. 386 00:18:37,400 --> 00:18:39,439 Speaker 4: That's eight three to three Magi Tax. 387 00:18:43,840 --> 00:18:47,399 Speaker 1: Stop funding Uncle Sam's retirement and start planning for your 388 00:18:47,440 --> 00:18:50,920 Speaker 1: own successful retirement. As we return to the Maggie Tax 389 00:18:50,960 --> 00:18:54,359 Speaker 1: Financial Show with your host Robert and Chris Maggie with 390 00:18:54,480 --> 00:18:57,600 Speaker 1: Maggie Tax and Wealth Advisors for information on how you 391 00:18:57,640 --> 00:19:02,520 Speaker 1: can create a tax free retirement eight three three Magie Tax, 392 00:19:02,920 --> 00:19:06,439 Speaker 1: or visit Maggie Tax dot com. Now you're host with 393 00:19:06,560 --> 00:19:09,800 Speaker 1: Maggie Tax and Wealth Advisors, Robert and Chris Maggie. 394 00:19:10,760 --> 00:19:13,359 Speaker 2: All right, welcome back, and you're listening to the Maggie 395 00:19:13,400 --> 00:19:16,159 Speaker 2: Tax and Financial Show. My name is Robert Maggie and 396 00:19:16,200 --> 00:19:18,320 Speaker 2: I'm here with my son and co host Chris Maggie. 397 00:19:18,320 --> 00:19:21,560 Speaker 2: And today we've been talking about required minimum distributions, how 398 00:19:21,560 --> 00:19:24,800 Speaker 2: they affect you, trying to educate you on maybe possibly 399 00:19:24,840 --> 00:19:28,520 Speaker 2: doing a strategic rollout for those of you that have 400 00:19:28,600 --> 00:19:31,080 Speaker 2: IRA values. I get a lot of emails a week, 401 00:19:31,119 --> 00:19:34,040 Speaker 2: a million dollars or more they're out there, and what 402 00:19:34,040 --> 00:19:35,439 Speaker 2: are you going to do with it? Because it's not 403 00:19:35,600 --> 00:19:38,800 Speaker 2: all tax free, it's taxable, and you need to understand 404 00:19:38,800 --> 00:19:42,080 Speaker 2: the rules of what the government does and why they 405 00:19:42,160 --> 00:19:43,760 Speaker 2: and how they apply it to each and every one 406 00:19:43,760 --> 00:19:47,879 Speaker 2: of you. So start thinking about strategies, start thinking about options, 407 00:19:48,440 --> 00:19:50,360 Speaker 2: and sit down and give us a call eight three 408 00:19:50,359 --> 00:19:53,440 Speaker 2: to three Magie Tax eight three three Maggie Tax. Visit 409 00:19:53,480 --> 00:19:56,199 Speaker 2: our website, Maggie Tax dot com. And this is what 410 00:19:56,240 --> 00:19:57,639 Speaker 2: you have to do. You have to sit down and 411 00:19:57,680 --> 00:20:00,119 Speaker 2: have a plan, have a plan of attack because the 412 00:20:00,240 --> 00:20:03,240 Speaker 2: requirement of distributions for all of you that have IRA's 413 00:20:03,320 --> 00:20:05,240 Speaker 2: and four oh one k's and four h three b's, 414 00:20:05,480 --> 00:20:07,760 Speaker 2: they are coming. And this is when the government says, 415 00:20:07,840 --> 00:20:10,199 Speaker 2: knock knock, Now you have to start paying us. So 416 00:20:10,440 --> 00:20:12,800 Speaker 2: give us a call eight three to three Maggie Tax. 417 00:20:12,880 --> 00:20:15,960 Speaker 2: So now this is where rm ds stop being just 418 00:20:16,000 --> 00:20:19,080 Speaker 2: a retirement rule and start showing up in places you 419 00:20:19,119 --> 00:20:22,240 Speaker 2: really feel that your taxes, because that's where it hits. 420 00:20:22,280 --> 00:20:25,320 Speaker 2: Because once those rm ds begin, and many of you 421 00:20:25,400 --> 00:20:28,159 Speaker 2: know what I'm talking about, they don't just sit quietly 422 00:20:28,200 --> 00:20:30,560 Speaker 2: in the background. They have a way of sneaking into 423 00:20:30,600 --> 00:20:34,679 Speaker 2: your tax return, tapping your shoulder and saying, hey, remember me, 424 00:20:34,880 --> 00:20:37,040 Speaker 2: guess what you got to pay me? Now it's my turn. 425 00:20:37,119 --> 00:20:38,840 Speaker 4: That's the thing. And you know, here's a tricky part. 426 00:20:38,880 --> 00:20:40,919 Speaker 4: It's not just about the tax you pay on the 427 00:20:40,960 --> 00:20:43,560 Speaker 4: withdrawal itself. That rm ds can actually set off a 428 00:20:43,600 --> 00:20:47,000 Speaker 4: chain of reaction. It can affect your SOLI security. You know, 429 00:20:47,000 --> 00:20:49,280 Speaker 4: your soial security get taxes as much as eighty five percent. 430 00:20:49,280 --> 00:20:52,120 Speaker 4: A lot of people don't know that your Medicare premiums 431 00:20:52,560 --> 00:20:55,440 Speaker 4: could be in jeopardy and sometimes even your long term 432 00:20:55,480 --> 00:20:59,000 Speaker 4: planning for your family. So let's walk through this together, 433 00:20:59,119 --> 00:21:02,680 Speaker 4: because what most some people don't know is that there's 434 00:21:02,720 --> 00:21:06,000 Speaker 4: a huge ripple and it can be especially if you've 435 00:21:06,280 --> 00:21:09,160 Speaker 4: been a good saver. And I'm going to break down 436 00:21:09,359 --> 00:21:12,760 Speaker 4: for the biggest ways that rmds can impact your tax picture, 437 00:21:13,520 --> 00:21:16,000 Speaker 4: so you know exactly what to watch for and why 438 00:21:16,080 --> 00:21:20,240 Speaker 4: planning ahead is so important and it can make all 439 00:21:20,440 --> 00:21:20,919 Speaker 4: the difference. 440 00:21:21,000 --> 00:21:21,879 Speaker 3: Let's jump into this. 441 00:21:22,000 --> 00:21:24,600 Speaker 2: And by the way, if you're seventy three, just keep 442 00:21:24,640 --> 00:21:27,960 Speaker 2: in mind that you have to do something. And that's 443 00:21:27,960 --> 00:21:29,760 Speaker 2: a good reason to give us a call, because now 444 00:21:29,760 --> 00:21:31,719 Speaker 2: you're going to see the real impact. If you're younger. 445 00:21:32,080 --> 00:21:34,480 Speaker 2: Then Chris and I can show you some strategic rollouts 446 00:21:34,560 --> 00:21:36,320 Speaker 2: exactly what they can do to make it lighter. 447 00:21:36,359 --> 00:21:38,520 Speaker 4: We'll stay there. You know eight three to three magi tax. 448 00:21:38,560 --> 00:21:40,679 Speaker 4: Remember that number eight three three magi attax. Just call 449 00:21:40,760 --> 00:21:42,920 Speaker 4: us any time we have ofbviously on both sides of 450 00:21:42,960 --> 00:21:44,879 Speaker 4: the bay. But it doesn't matter if you're about to 451 00:21:45,000 --> 00:21:47,679 Speaker 4: get to this age. If you're listening and you're not 452 00:21:47,720 --> 00:21:50,120 Speaker 4: even close to this age, my gosh, now's to talk. 453 00:21:50,240 --> 00:21:52,960 Speaker 4: Now is the even better time to come in because 454 00:21:53,600 --> 00:21:55,159 Speaker 4: this is where we can show you how to avoid 455 00:21:55,240 --> 00:21:56,600 Speaker 4: the tax trap exactly. 456 00:21:56,920 --> 00:21:59,120 Speaker 2: So let me say this. Rm ds They increase your 457 00:21:59,119 --> 00:22:02,440 Speaker 2: taxable income whether you need it or not. So once 458 00:22:02,480 --> 00:22:04,199 Speaker 2: an R and D comes out, it gets added to 459 00:22:04,240 --> 00:22:06,959 Speaker 2: your income for the year, plain and simple. There's no 460 00:22:07,080 --> 00:22:09,399 Speaker 2: mystery there. You get a ten ninety nine, you got 461 00:22:09,440 --> 00:22:11,280 Speaker 2: to put it on your tax return, and your tax 462 00:22:11,320 --> 00:22:13,000 Speaker 2: return your tax go up. 463 00:22:12,880 --> 00:22:15,320 Speaker 4: So it's considered you know, ordinary income money comes in 464 00:22:15,359 --> 00:22:17,560 Speaker 4: and got on your tax turn as if you were working. 465 00:22:17,640 --> 00:22:20,199 Speaker 4: So if you had this thirty thousand, it has to 466 00:22:20,200 --> 00:22:22,159 Speaker 4: come out. It's like you got a job, you just 467 00:22:22,200 --> 00:22:23,960 Speaker 4: made thirty grand. It goes on your tax turn. But 468 00:22:24,000 --> 00:22:25,600 Speaker 4: it's taxed a little differently, but at the end of 469 00:22:25,600 --> 00:22:27,480 Speaker 4: the day, it's part of your adjusticross income. 470 00:22:27,640 --> 00:22:29,399 Speaker 2: You just said something. I'm sorry, I was laughing. But 471 00:22:29,400 --> 00:22:31,880 Speaker 2: the way you put it, you worked all your life, right, 472 00:22:31,920 --> 00:22:34,000 Speaker 2: you had a paycheck, you paid your taxes, and then 473 00:22:34,040 --> 00:22:36,879 Speaker 2: you retire and you're gonna get money. Guess what, you 474 00:22:36,960 --> 00:22:39,960 Speaker 2: have another paycheck. The problem is it's now a it's 475 00:22:40,000 --> 00:22:43,119 Speaker 2: a check that's taxable. So it's gonna I bet you 476 00:22:43,200 --> 00:22:45,240 Speaker 2: that's gonna give you more money in retirement than you 477 00:22:45,320 --> 00:22:46,240 Speaker 2: were when you work it. 478 00:22:46,320 --> 00:22:48,760 Speaker 4: Right, But that's half the story because now you've got 479 00:22:48,760 --> 00:22:52,080 Speaker 4: to pay more in t The tax word exactly good. 480 00:22:52,240 --> 00:22:54,520 Speaker 2: So even if the money goes straight into savings or 481 00:22:54,560 --> 00:22:58,399 Speaker 2: sits untouched and you're checking account, the IRS still treats 482 00:22:58,440 --> 00:23:00,840 Speaker 2: it as taxable income. And what do you get, Chris, 483 00:23:01,080 --> 00:23:04,040 Speaker 2: when you have money in a tax like a savings 484 00:23:04,160 --> 00:23:04,960 Speaker 2: or checking. 485 00:23:04,880 --> 00:23:05,959 Speaker 4: What do you get at the end of the year. 486 00:23:05,960 --> 00:23:08,200 Speaker 4: If there's interest, well, you got an interest statement? Who 487 00:23:08,240 --> 00:23:08,960 Speaker 4: or ten on your nine? 488 00:23:09,040 --> 00:23:09,280 Speaker 3: Right? 489 00:23:09,400 --> 00:23:11,320 Speaker 2: So now that you have your arm do you take 490 00:23:11,320 --> 00:23:13,960 Speaker 2: it out? You put on your tax return, you pay taxes, 491 00:23:14,000 --> 00:23:15,960 Speaker 2: and then you take that money the arm d Because 492 00:23:15,960 --> 00:23:17,800 Speaker 2: people ask us, what do I do with it? Well, 493 00:23:17,800 --> 00:23:19,760 Speaker 2: you can put it into a checking or savings or 494 00:23:19,760 --> 00:23:22,879 Speaker 2: another investment. But guess what, You're going to be taxed 495 00:23:22,920 --> 00:23:25,600 Speaker 2: on that too, So you're gonna be taxed on it again. 496 00:23:26,280 --> 00:23:28,679 Speaker 2: So find find what I'm trying. 497 00:23:28,440 --> 00:23:29,000 Speaker 3: To say here. 498 00:23:29,240 --> 00:23:30,800 Speaker 2: You're gonna be tax on it once, You're gonna be 499 00:23:30,880 --> 00:23:32,399 Speaker 2: tax on it twice. You're gonna be tax on it 500 00:23:32,440 --> 00:23:35,919 Speaker 2: maybe three times. So if you don't think about strategically 501 00:23:36,320 --> 00:23:40,240 Speaker 2: reducing that liability to tax free like a Roth conversion, 502 00:23:40,560 --> 00:23:42,760 Speaker 2: and pay the tax on a low rate, then when 503 00:23:42,800 --> 00:23:44,520 Speaker 2: you get to the age where you're going to be 504 00:23:44,560 --> 00:23:47,800 Speaker 2: seventy three, you may not have any tax to pay. 505 00:23:47,880 --> 00:23:49,440 Speaker 2: What's wrong with that, Chris. 506 00:23:49,240 --> 00:23:49,719 Speaker 3: Well, that's it. 507 00:23:49,720 --> 00:23:53,840 Speaker 4: It's called planning, and most people are just dealing with preparation. Preparations, 508 00:23:53,880 --> 00:23:58,280 Speaker 4: the old what happened last year. We're talking about planning. 509 00:23:58,320 --> 00:24:00,600 Speaker 4: That's what can happen in the future. So you want 510 00:24:00,640 --> 00:24:04,600 Speaker 4: to work with an advisor who does tax planning, income planning, 511 00:24:04,800 --> 00:24:08,720 Speaker 4: investment planning, state planning where they put everything together and 512 00:24:08,800 --> 00:24:12,480 Speaker 4: complete it. That's what you're looking for. So these rm 513 00:24:12,560 --> 00:24:16,359 Speaker 4: ds can cause a problem. That's why it's so important 514 00:24:16,359 --> 00:24:18,240 Speaker 4: to pick up the phone, write this number down eight 515 00:24:18,280 --> 00:24:21,760 Speaker 4: three three MAGI Tax at MAGI Tax and Wealth Advisors. 516 00:24:22,240 --> 00:24:24,800 Speaker 4: You know, we do a lot to help you complete planning. 517 00:24:25,000 --> 00:24:26,880 Speaker 4: So these rm ds can push more of your social 518 00:24:26,880 --> 00:24:30,240 Speaker 4: security into a taxable category. We see this during tax time, 519 00:24:30,280 --> 00:24:32,199 Speaker 4: we see it all year. My gosh, it's like an 520 00:24:32,280 --> 00:24:33,800 Speaker 4: X ray to us. So if you have a tax turn, 521 00:24:33,880 --> 00:24:35,680 Speaker 4: bring it in. Let's look at it. I'll show you 522 00:24:36,000 --> 00:24:37,879 Speaker 4: so exactly what we see. I'll explain it to you 523 00:24:37,920 --> 00:24:41,960 Speaker 4: as well. Rmds count that income. It counts towards the 524 00:24:42,040 --> 00:24:46,359 Speaker 4: formula that determines whether your social Security is a tax 525 00:24:46,440 --> 00:24:49,159 Speaker 4: So many people don't understand this. Social Security can be 526 00:24:49,200 --> 00:24:52,560 Speaker 4: taxed at zero percent. That's kind of an oxymoron. It 527 00:24:52,560 --> 00:24:55,240 Speaker 4: could be taxed at zero It doesn't have to be taxed. 528 00:24:55,280 --> 00:24:57,120 Speaker 4: It's your other income that causes it to pay tax. 529 00:24:57,200 --> 00:25:00,480 Speaker 4: So it's part of the formula that adds on whether 530 00:25:00,640 --> 00:25:03,000 Speaker 4: your sol Security is getting taxed. That means an rm 531 00:25:03,080 --> 00:25:07,639 Speaker 4: D can quietly turn what was once partially taxed or 532 00:25:07,720 --> 00:25:09,600 Speaker 4: not even taxed at all, and to benefits that are 533 00:25:09,840 --> 00:25:11,800 Speaker 4: eighty five percent taxable. 534 00:25:11,920 --> 00:25:13,480 Speaker 3: Exactly, So what do you do with that? 535 00:25:13,920 --> 00:25:16,960 Speaker 4: So here give an example, say you retired sixty five, 536 00:25:17,000 --> 00:25:19,960 Speaker 4: your cruising a long retirement. You're getting Social Security, maybe 537 00:25:20,000 --> 00:25:23,000 Speaker 4: getting a pension. You know your husband's getting social Security. 538 00:25:23,000 --> 00:25:24,800 Speaker 4: You guys have got three income streams. You're not paying 539 00:25:24,840 --> 00:25:26,920 Speaker 4: anything in tax. It's a great income. And then guess 540 00:25:27,000 --> 00:25:29,679 Speaker 4: what the rm ds come and knock in and you 541 00:25:29,840 --> 00:25:32,080 Speaker 4: save for so long you don't need the money, and 542 00:25:32,080 --> 00:25:35,080 Speaker 4: guess what the rm ds make it where your Social 543 00:25:35,080 --> 00:25:37,040 Speaker 4: Security gets taxed up to eighty five percent. Now you 544 00:25:37,040 --> 00:25:39,720 Speaker 4: have a tax liability. This is what we're talking about 545 00:25:39,800 --> 00:25:43,520 Speaker 4: getting sneaked up. But wait, there's still more and more. 546 00:25:43,640 --> 00:25:44,040 Speaker 3: It's more. 547 00:25:44,359 --> 00:25:46,560 Speaker 2: So think about this, how many of you are taking 548 00:25:47,160 --> 00:25:51,439 Speaker 2: on Medicare and the income from rmds can raise your 549 00:25:51,480 --> 00:25:52,400 Speaker 2: Medicare premiums. 550 00:25:52,400 --> 00:25:56,439 Speaker 4: You're Part B and you're Part D and jrug Planet's 551 00:25:56,440 --> 00:25:56,840 Speaker 4: are Part D. 552 00:25:57,119 --> 00:25:58,640 Speaker 3: So people out there, but. 553 00:25:58,640 --> 00:26:01,560 Speaker 2: It raises depends on what level you're at. But this 554 00:26:01,600 --> 00:26:03,879 Speaker 2: one catches people by surprise all the time because you 555 00:26:03,880 --> 00:26:06,240 Speaker 2: get a letter and that says your Social Security says 556 00:26:06,240 --> 00:26:08,280 Speaker 2: now your Part B premium is going up, and you 557 00:26:08,320 --> 00:26:11,280 Speaker 2: go why why Because your income went up. So rmds 558 00:26:11,320 --> 00:26:15,720 Speaker 2: can push your income over certain thresholds, triggering IRMA good 559 00:26:15,760 --> 00:26:20,520 Speaker 2: old IRMAA income related monthly Adjustment search charges. It's a 560 00:26:20,640 --> 00:26:24,000 Speaker 2: tax people, which means higher Medicare Part B and Part 561 00:26:24,080 --> 00:26:27,000 Speaker 2: D premiums sometimes years later. And what they do is 562 00:26:27,000 --> 00:26:29,439 Speaker 2: they go back two years. So let's just say you 563 00:26:29,520 --> 00:26:32,160 Speaker 2: taking i'll say fifty sixty thousand out of your IRA 564 00:26:32,720 --> 00:26:35,000 Speaker 2: two years ago. Two years letter is when you're going 565 00:26:35,040 --> 00:26:38,320 Speaker 2: to get the increase in URMA. And I'm telling you 566 00:26:38,359 --> 00:26:40,920 Speaker 2: this is crazy because people call us all the time 567 00:26:41,000 --> 00:26:44,080 Speaker 2: say what is this. It's a taxed so large rm 568 00:26:44,160 --> 00:26:46,960 Speaker 2: ds can stack on top of other income sources. What 569 00:26:47,080 --> 00:26:50,240 Speaker 2: Chris was saying, you get a pension, you get rental income, 570 00:26:50,440 --> 00:26:53,280 Speaker 2: you get investment income. When rmds land on top of 571 00:26:53,320 --> 00:26:56,800 Speaker 2: everything else, they can create bigger tax bills than expected, 572 00:26:57,240 --> 00:27:01,600 Speaker 2: especially if your retirement income wasn't carefully coordinated. So why 573 00:27:01,840 --> 00:27:04,199 Speaker 2: are we so adamant about this because we see this 574 00:27:04,400 --> 00:27:07,560 Speaker 2: every single day. We've been doing tax planning for years. 575 00:27:07,600 --> 00:27:09,280 Speaker 2: And this is when people come in and hear the 576 00:27:09,400 --> 00:27:12,040 Speaker 2: radio show and watch the TV show and they go, well, gee, 577 00:27:12,040 --> 00:27:13,440 Speaker 2: my guy never tells me that. 578 00:27:13,560 --> 00:27:14,120 Speaker 3: Well, that's it. 579 00:27:14,200 --> 00:27:16,840 Speaker 2: They're not going to tell you that because you didn't ask. 580 00:27:17,000 --> 00:27:19,160 Speaker 4: Well, not only that, it's just that they really don't 581 00:27:19,200 --> 00:27:20,880 Speaker 4: hate to say this, but they don't really care much. 582 00:27:20,920 --> 00:27:24,959 Speaker 4: Why should they, because they just deal with maybe your investments, 583 00:27:25,119 --> 00:27:27,200 Speaker 4: or they just deal your banking, or they just deal 584 00:27:27,280 --> 00:27:30,000 Speaker 4: with you know, whatever you hire them to do. They 585 00:27:30,080 --> 00:27:34,520 Speaker 4: don't complete planners. Now even your CPA doesn't really have 586 00:27:34,560 --> 00:27:38,879 Speaker 4: to take care but those tax preparation is the past, 587 00:27:38,920 --> 00:27:40,960 Speaker 4: so they just have to deal with what the past says, 588 00:27:41,400 --> 00:27:43,199 Speaker 4: what you already did. Well, we want to focus on 589 00:27:43,280 --> 00:27:46,840 Speaker 4: is tax planning. This is huge. This is a big 590 00:27:46,960 --> 00:27:50,639 Speaker 4: deal because when we see retirees come in, they're all excited, 591 00:27:51,080 --> 00:27:54,320 Speaker 4: they want to retire, they retire, they're living their retirement years, 592 00:27:54,320 --> 00:27:57,399 Speaker 4: and then guess what they come in years later. We 593 00:27:57,480 --> 00:27:59,879 Speaker 4: see these people and they say, oh my gosh, I 594 00:28:00,400 --> 00:28:03,200 Speaker 4: have less income. What do you mean, Well, that Part B, 595 00:28:03,560 --> 00:28:08,320 Speaker 4: the IRMA IRMA, the surcharge for your Medicare Part B 596 00:28:08,520 --> 00:28:12,200 Speaker 4: or the Medicare Part D, the prescription drug premium increases 597 00:28:12,280 --> 00:28:17,560 Speaker 4: because of these distributions and which all require minimum distributions. Now, 598 00:28:17,960 --> 00:28:20,920 Speaker 4: what happens is these these the Part B and the 599 00:28:20,920 --> 00:28:22,560 Speaker 4: Part D comes out of your Social Security check. That 600 00:28:22,560 --> 00:28:26,439 Speaker 4: means less income to you. So what are you doing 601 00:28:26,520 --> 00:28:29,639 Speaker 4: about it? That's my question to the listeners today. If 602 00:28:29,720 --> 00:28:33,520 Speaker 4: you're listening today and you have requirementium distributions, or you're 603 00:28:33,560 --> 00:28:36,320 Speaker 4: approaching this, or you know what they are, you have 604 00:28:36,359 --> 00:28:38,080 Speaker 4: to pick up the phone and schedule time to meet 605 00:28:38,120 --> 00:28:40,880 Speaker 4: with us. Why because we can analyze this. We can 606 00:28:40,920 --> 00:28:42,440 Speaker 4: show you what those R and D are going to 607 00:28:42,440 --> 00:28:45,680 Speaker 4: be every single year and what to do to reduce 608 00:28:45,880 --> 00:28:48,480 Speaker 4: it or detect liability. Maybe there's a way to do 609 00:28:48,520 --> 00:28:49,560 Speaker 4: a strategic roll up. 610 00:28:50,040 --> 00:28:51,120 Speaker 3: You're on the. 611 00:28:51,160 --> 00:28:56,000 Speaker 4: Highway right now where you're going towards something that's forever taxed. 612 00:28:57,880 --> 00:29:00,239 Speaker 4: But guess what, you can get off and go on 613 00:29:00,520 --> 00:29:05,000 Speaker 4: to the other freeway where there's no tax ever. Again, 614 00:29:05,320 --> 00:29:07,600 Speaker 4: what environment do you want to live in? And that's 615 00:29:07,600 --> 00:29:09,680 Speaker 4: what we're asking you today, So pick up the phone, 616 00:29:09,960 --> 00:29:12,400 Speaker 4: schedule a time to meet with us. Eight three three 617 00:29:12,400 --> 00:29:15,760 Speaker 4: mag Attacks don't forget Every Sunday on ABC TV, tune 618 00:29:15,760 --> 00:29:20,080 Speaker 4: into the Megatax and Wealth Advisors show ten thirty on ABCTV. 619 00:29:20,400 --> 00:29:22,440 Speaker 2: Yeah, and one thing again, I would mention that go 620 00:29:22,480 --> 00:29:27,560 Speaker 2: to our website magitax dot com. There's a seminar link there. 621 00:29:28,000 --> 00:29:30,480 Speaker 2: We do four seminars a month at different locations and 622 00:29:30,560 --> 00:29:33,040 Speaker 2: we talk about everything that we're talking about here. It 623 00:29:33,080 --> 00:29:36,520 Speaker 2: doesn't cost you anything. They're usually at libraries. It's you know, 624 00:29:36,600 --> 00:29:39,000 Speaker 2: either in the ten o'clock, eleven o'clock or two o'clock 625 00:29:39,040 --> 00:29:41,440 Speaker 2: in the afternoon. We have some of them at six o'clock. 626 00:29:41,440 --> 00:29:43,760 Speaker 2: But register for some of these seminars and you will 627 00:29:43,760 --> 00:29:46,360 Speaker 2: see exactly what we're talking about, how we can help 628 00:29:46,400 --> 00:29:48,760 Speaker 2: you out because there's so much here to talk about. 629 00:29:48,800 --> 00:29:52,040 Speaker 2: So as you can see, rmds aren't just about taking 630 00:29:52,080 --> 00:29:55,520 Speaker 2: money out of your retirement account. They ripple through your 631 00:29:55,640 --> 00:29:59,360 Speaker 2: entire financial picture, from higher taxes which we talked about, 632 00:29:59,600 --> 00:30:03,120 Speaker 2: to ta X civil social Security, to surprise Medicare premium increases. 633 00:30:03,560 --> 00:30:06,880 Speaker 2: These distributions have a way of piling on if you're 634 00:30:06,920 --> 00:30:09,960 Speaker 2: not paying attention. But here's the good news, and yes 635 00:30:10,360 --> 00:30:13,440 Speaker 2: there is good news. You are not powerless here. There 636 00:30:13,440 --> 00:30:16,959 Speaker 2: are smart, perfectly legal strategies that can help reduce the 637 00:30:17,000 --> 00:30:20,760 Speaker 2: size of your future rm ds and soften the tax 638 00:30:20,800 --> 00:30:23,520 Speaker 2: impact long before they even begin. And this is what 639 00:30:23,560 --> 00:30:26,520 Speaker 2: it's about. So coming up next, we're talking about what 640 00:30:26,600 --> 00:30:29,920 Speaker 2: you can do about it. Simple proactive ways to manage 641 00:30:29,920 --> 00:30:32,360 Speaker 2: your rm ds, So don't manage you. You're listening to 642 00:30:32,400 --> 00:30:34,840 Speaker 2: the Maggie Tax and Financial Show, and you won't want 643 00:30:34,840 --> 00:30:35,920 Speaker 2: to miss this part. 644 00:30:41,520 --> 00:30:45,080 Speaker 1: Stop funding Uncle Sam's retirement and start planning for your 645 00:30:45,120 --> 00:30:48,600 Speaker 1: own successful retirement. As we return to the Maggie Tax 646 00:30:48,640 --> 00:30:52,040 Speaker 1: Financial Show with your host Robert and Chris Maggie with 647 00:30:52,160 --> 00:30:55,280 Speaker 1: Maggie Tax and Wealth Advisors. For information on how you 648 00:30:55,320 --> 00:30:58,920 Speaker 1: can create a tax free retirement, call eight three three 649 00:30:59,320 --> 00:31:03,640 Speaker 1: Maggie Tax or visit Maggie Tax dot com. Now your 650 00:31:03,640 --> 00:31:07,520 Speaker 1: host with Maggie Tax and Wealth Advisors, Robert and Chris Maggie, 651 00:31:07,880 --> 00:31:08,320 Speaker 1: Thanks for. 652 00:31:08,280 --> 00:31:11,160 Speaker 4: Tuning into the Megatax and Wealth Advisors Show. And all right, 653 00:31:11,200 --> 00:31:13,840 Speaker 4: this is the moment we've been building towards because if 654 00:31:14,360 --> 00:31:17,920 Speaker 4: the last segment made you think, wow, rm ds can 655 00:31:17,960 --> 00:31:20,240 Speaker 4: really mess with my taxes, and this is a segment 656 00:31:20,320 --> 00:31:24,160 Speaker 4: where you exhale, you take a deep breath and think, okay, 657 00:31:24,440 --> 00:31:25,320 Speaker 4: I got options. 658 00:31:25,320 --> 00:31:26,120 Speaker 3: So here's the truth. 659 00:31:26,920 --> 00:31:31,040 Speaker 4: Requirementum distributions or rm ds are required, as it's in 660 00:31:31,120 --> 00:31:36,200 Speaker 4: its name, but suffering through massive tax bills is not so. 661 00:31:36,280 --> 00:31:39,040 Speaker 4: With the right strategy, the right timing, and little productive 662 00:31:39,560 --> 00:31:44,280 Speaker 4: planning can help you shrink future requirement of distributions, lower 663 00:31:44,320 --> 00:31:46,880 Speaker 4: your lifetime taxes, and keep more of your heart earned 664 00:31:46,880 --> 00:31:50,600 Speaker 4: money exactly where it belongs, working for you. So pick 665 00:31:50,680 --> 00:31:52,280 Speaker 4: up the phone, schedule time to meet with us. Eight 666 00:31:52,360 --> 00:31:55,000 Speaker 4: three three, Magi Tax. If you have an IRA form 667 00:31:55,040 --> 00:31:56,720 Speaker 4: on K and you're talking about rm ds and you 668 00:31:56,760 --> 00:31:58,880 Speaker 4: worry about them, and you can't sleep at night, and 669 00:31:58,920 --> 00:32:01,560 Speaker 4: this is bothering you because more in taxes, take a 670 00:32:01,600 --> 00:32:04,480 Speaker 4: deep breath, pick up the phone. Let's have a conversation. 671 00:32:04,600 --> 00:32:07,680 Speaker 4: Eight three to three, Maggie Tax. Let's talk about solutions, 672 00:32:08,040 --> 00:32:09,240 Speaker 4: and that's what we're going to do. We're going to 673 00:32:09,240 --> 00:32:12,520 Speaker 4: share with you the smartest, most effective ways to manage 674 00:32:12,640 --> 00:32:15,520 Speaker 4: rm ds before they manage you, the moves that turn 675 00:32:15,600 --> 00:32:20,720 Speaker 4: retirement rules into retirement advantages, take advantage of the opportunities, 676 00:32:20,720 --> 00:32:24,520 Speaker 4: and this is where strategy meets opportunity, and that's what 677 00:32:24,560 --> 00:32:24,800 Speaker 4: we do. 678 00:32:24,880 --> 00:32:26,040 Speaker 3: So let's dive into this. 679 00:32:26,000 --> 00:32:28,800 Speaker 2: And just me shure remember go to our website, Maggie 680 00:32:28,840 --> 00:32:31,480 Speaker 2: tax dot com. Click on the retirement tax bill on 681 00:32:31,480 --> 00:32:33,680 Speaker 2: the top right. You can put in your numbers and 682 00:32:33,680 --> 00:32:36,080 Speaker 2: you can see in thirty seconds what Chris and I 683 00:32:36,120 --> 00:32:38,560 Speaker 2: are talking about, what your tax bill would look like. 684 00:32:38,920 --> 00:32:40,960 Speaker 2: And then pick up the phone, give us a call. 685 00:32:41,000 --> 00:32:42,920 Speaker 2: We'll go over the whole thing with you. We'll make 686 00:32:42,920 --> 00:32:45,040 Speaker 2: it simple, explain it to you and go through any 687 00:32:45,160 --> 00:32:47,800 Speaker 2: questions you may have eight three to three Maggie tax. 688 00:32:48,120 --> 00:32:51,600 Speaker 2: So I'm going to break this down into four parts. 689 00:32:51,720 --> 00:32:55,560 Speaker 2: Proven approaches that can help reduce future rm ds, smooth 690 00:32:55,600 --> 00:32:58,120 Speaker 2: out your taxes, and keep more of your money, which 691 00:32:58,200 --> 00:33:01,160 Speaker 2: is what everybody wants working for you you. So let's 692 00:33:01,160 --> 00:33:03,680 Speaker 2: take them one at a time. The first one shrink 693 00:33:03,720 --> 00:33:07,960 Speaker 2: future rm ds with thoughtful wroth conversions. By converting part 694 00:33:08,000 --> 00:33:11,160 Speaker 2: of a traditional IRA to a wroth IRA. You pay 695 00:33:11,200 --> 00:33:15,040 Speaker 2: the tax now, often during lower income years, and in return, 696 00:33:15,280 --> 00:33:18,840 Speaker 2: that money grows tax free with no rm ds required later. 697 00:33:19,480 --> 00:33:22,000 Speaker 2: It's a powerful way to reduce how much the IRS 698 00:33:22,040 --> 00:33:24,959 Speaker 2: forces out of your account in your seventies and beyond. 699 00:33:25,200 --> 00:33:27,640 Speaker 2: And Chris, that's step number one, right, you know. 700 00:33:27,680 --> 00:33:29,360 Speaker 4: And it's interesting when you say that, you know, shrink 701 00:33:29,360 --> 00:33:31,720 Speaker 4: your future rmds because you have control, you have flexibility, 702 00:33:31,720 --> 00:33:34,600 Speaker 4: and you can do this if you have planning, planning, planning, planning. 703 00:33:34,600 --> 00:33:35,560 Speaker 3: We talked about precision. 704 00:33:35,640 --> 00:33:37,840 Speaker 4: Last show, we talked about ways to do this the 705 00:33:37,880 --> 00:33:40,440 Speaker 4: right way, bucket planning, precision planning. 706 00:33:40,480 --> 00:33:41,280 Speaker 3: We can do this. 707 00:33:41,960 --> 00:33:43,840 Speaker 4: You can do it too, if you come in to 708 00:33:43,880 --> 00:33:45,720 Speaker 4: meet with us eight three to three magg attax. We 709 00:33:45,720 --> 00:33:48,080 Speaker 4: have office on both sides of the day, so it's 710 00:33:48,120 --> 00:33:50,800 Speaker 4: a thoughtful process. We can show you how to do 711 00:33:50,920 --> 00:33:55,240 Speaker 4: these conversions. So what about these qualified charitable distributions? 712 00:33:55,240 --> 00:33:55,800 Speaker 3: What are those? 713 00:33:56,160 --> 00:33:58,719 Speaker 2: Well, once you turn seventy and a half, you can 714 00:33:58,800 --> 00:34:01,840 Speaker 2: send money straight from your IRA to a qualified charity. 715 00:34:02,200 --> 00:34:05,240 Speaker 2: People ask us all the time, and that amount counts 716 00:34:05,240 --> 00:34:08,480 Speaker 2: toward your rm D but doesn't count as a taxable income, 717 00:34:09,040 --> 00:34:11,480 Speaker 2: which means you help a good cause. If you're charitably 718 00:34:11,520 --> 00:34:14,319 Speaker 2: inclined and keep your tax bill lower, that's a win 719 00:34:14,360 --> 00:34:15,040 Speaker 2: win situation. 720 00:34:15,120 --> 00:34:16,919 Speaker 4: So oh it' stop for a seconds so they don't 721 00:34:16,920 --> 00:34:19,040 Speaker 4: need the money and your charitable inclined. You can take 722 00:34:19,040 --> 00:34:21,960 Speaker 4: a distribution it satisfies as your rm D, so that 723 00:34:22,000 --> 00:34:24,400 Speaker 4: means you don't get taxed at a twenty five percent penalty. 724 00:34:24,440 --> 00:34:25,359 Speaker 3: You satisfied it. 725 00:34:25,400 --> 00:34:27,080 Speaker 4: But then two, it doesn't go on your tax turn 726 00:34:27,880 --> 00:34:30,000 Speaker 4: does not right, so you don't have to be tax 727 00:34:30,040 --> 00:34:32,000 Speaker 4: on it correct. And the third thing, it goes to 728 00:34:32,120 --> 00:34:36,319 Speaker 4: a charitable organization that your choice good about that you 729 00:34:36,360 --> 00:34:36,919 Speaker 4: can help. 730 00:34:37,080 --> 00:34:39,680 Speaker 3: Yeah, it's a win win situation, win win win. 731 00:34:39,880 --> 00:34:41,640 Speaker 2: And you know what the reason why we talk about 732 00:34:41,640 --> 00:34:44,120 Speaker 2: that is because nobody talks about it. It's an option. 733 00:34:44,160 --> 00:34:46,360 Speaker 2: It's another strategy you can use and it may work, 734 00:34:46,680 --> 00:34:48,600 Speaker 2: and if we think it will, we're going to recommend it. 735 00:34:48,680 --> 00:34:51,520 Speaker 2: So these are things you can do. So take similar 736 00:34:51,600 --> 00:34:54,879 Speaker 2: intentional withdrawals before rm ds begin. What do I mean? 737 00:34:55,239 --> 00:34:58,160 Speaker 2: Instead of waiting until seventy three and suddenly facing large 738 00:34:58,200 --> 00:35:02,520 Speaker 2: mandatory withdrawals, you can take plan distributions earlier. And what 739 00:35:02,560 --> 00:35:05,560 Speaker 2: this does it helps spread taxes out over time and 740 00:35:05,680 --> 00:35:08,680 Speaker 2: keeps future r and ds from ballooning when you least 741 00:35:08,719 --> 00:35:10,960 Speaker 2: want them to. And think about that. Good. 742 00:35:11,080 --> 00:35:12,800 Speaker 3: No, no, you got a good thought. Go ahead. 743 00:35:12,960 --> 00:35:14,880 Speaker 2: The reason why because if you take them out sooner 744 00:35:14,880 --> 00:35:18,200 Speaker 2: and you stay in that tax bracket lower, why would 745 00:35:18,200 --> 00:35:19,800 Speaker 2: you not do that because later on it's going to 746 00:35:19,840 --> 00:35:21,440 Speaker 2: put you in a higher tax park. 747 00:35:21,480 --> 00:35:21,799 Speaker 3: That's right. 748 00:35:21,840 --> 00:35:23,440 Speaker 4: So that's why you just pick up the phone, schedule 749 00:35:23,480 --> 00:35:26,360 Speaker 4: time to meet with us. Distribution planning. Let me say it, 750 00:35:26,480 --> 00:35:31,200 Speaker 4: distribution planning a three three Maggie tax. This is where 751 00:35:31,239 --> 00:35:33,880 Speaker 4: we coordinate all income sources instead of just letting taxes 752 00:35:33,920 --> 00:35:37,120 Speaker 4: stack up. Because retirement income usually comes from multiple places 753 00:35:37,160 --> 00:35:40,160 Speaker 4: such as IRA as the former case, social Security for 754 00:35:40,280 --> 00:35:45,600 Speaker 4: you, your spouse pensions investments. So when withdrawals aren't coordinated properly, 755 00:35:45,680 --> 00:35:49,640 Speaker 4: income piles up and taxes follow. You have control of 756 00:35:49,719 --> 00:35:52,120 Speaker 4: how you pay tax and how much you're going to 757 00:35:52,160 --> 00:35:55,040 Speaker 4: pay tax if you have the right distribution plan. So 758 00:35:55,080 --> 00:35:59,320 Speaker 4: that's why a holistic strategy keeps everything working together smoothly. 759 00:35:59,360 --> 00:36:01,200 Speaker 4: And that's what we do here at Maggie Tax and 760 00:36:01,239 --> 00:36:05,920 Speaker 4: Financial Group Maggie Tax. That's what we do tax wealth advisors. 761 00:36:05,960 --> 00:36:09,120 Speaker 4: We help people accumulate wealth but also too in the 762 00:36:09,120 --> 00:36:13,600 Speaker 4: most tax efficient way distributed using distribution planning. So when 763 00:36:13,640 --> 00:36:15,960 Speaker 4: it comes to rmds, the rules may be required, but 764 00:36:16,080 --> 00:36:20,680 Speaker 4: overpaying on taxes is absolutely not focused. That's what we 765 00:36:20,719 --> 00:36:23,520 Speaker 4: don't want it to happen. So with the right strategy 766 00:36:23,560 --> 00:36:26,799 Speaker 4: in place, you can soften the impact, avoid surprise, and 767 00:36:26,840 --> 00:36:29,320 Speaker 4: even feel confident knowing that your tirement income is working 768 00:36:29,360 --> 00:36:31,719 Speaker 4: the way it should pay less tax. With Maggi Tax, 769 00:36:31,760 --> 00:36:34,000 Speaker 4: we can help you. If today's conversation had you thinking, 770 00:36:34,040 --> 00:36:36,120 Speaker 4: I wonder how this is going to apply to me, 771 00:36:36,440 --> 00:36:38,359 Speaker 4: well that's a good instinct. All you have to do 772 00:36:38,480 --> 00:36:40,319 Speaker 4: is pick up the phone, schedule time to meet with us. 773 00:36:40,320 --> 00:36:43,600 Speaker 4: Because every situation is different and even small adjustments can 774 00:36:43,600 --> 00:36:47,000 Speaker 4: make a meaningful difference over time a three to three 775 00:36:47,680 --> 00:36:48,480 Speaker 4: Maggie tax. 776 00:36:48,840 --> 00:36:51,600 Speaker 2: So today we covered an awful lot, as we do 777 00:36:51,680 --> 00:36:54,960 Speaker 2: on every show, but here's the big picture takeaway. Rmds 778 00:36:55,040 --> 00:36:58,239 Speaker 2: aren't some obscure iris rule meant to trip you up. 779 00:36:58,400 --> 00:37:00,839 Speaker 2: They are a predictable part of retirement. It's always been there, 780 00:37:00,880 --> 00:37:03,680 Speaker 2: and when you understand how they work, you can plan 781 00:37:03,760 --> 00:37:06,720 Speaker 2: for them instead of reacting to them or getting angry 782 00:37:06,719 --> 00:37:09,600 Speaker 2: about them. We talked about what rm ds are, why 783 00:37:09,640 --> 00:37:12,120 Speaker 2: they now start at age seventy three, how they can 784 00:37:12,200 --> 00:37:16,319 Speaker 2: quietly impact your taxes, social Security, and even Medicare, and 785 00:37:16,400 --> 00:37:20,360 Speaker 2: most importantly, how smart planning can dramatically reduce their effect 786 00:37:20,680 --> 00:37:24,200 Speaker 2: on your retirement income. And the difference between feeling stressed 787 00:37:24,200 --> 00:37:27,439 Speaker 2: about rm ds and feeling confident about them comes down 788 00:37:27,440 --> 00:37:31,359 Speaker 2: to one thing, having a plan that's designed specifically for you. 789 00:37:31,719 --> 00:37:34,560 Speaker 2: And that's exactly what we help people do every day. 790 00:37:34,880 --> 00:37:38,319 Speaker 2: So if this show sparked questions, curiosity, or that little 791 00:37:38,400 --> 00:37:42,440 Speaker 2: voice saying I should probably look into this, trust that instinct. 792 00:37:42,680 --> 00:37:47,480 Speaker 2: A simple conversation now can bring clarity, confidence, and potentially 793 00:37:47,560 --> 00:37:50,839 Speaker 2: significant tax savings down the road. Thank you so much 794 00:37:50,880 --> 00:37:52,960 Speaker 2: for spending part of your day with me and my 795 00:37:53,000 --> 00:37:55,600 Speaker 2: son Chris on the Maggie Tax Show. Until next time, 796 00:37:55,680 --> 00:37:59,680 Speaker 2: stay informed, stay proactive, and remember your retirement should work 797 00:37:59,680 --> 00:38:01,520 Speaker 2: for you, not the other way around. 798 00:38:05,280 --> 00:38:08,120 Speaker 1: Thank you for listening to Maggie Tax and Financial Show 799 00:38:08,160 --> 00:38:11,920 Speaker 1: with Robert and Chris. Maggie of Maggie Tax Wealth Advisors. 800 00:38:12,000 --> 00:38:15,319 Speaker 1: Listen here five to six pm every Saturday and from 801 00:38:15,360 --> 00:38:18,520 Speaker 1: eleven am till noon every Sunday, or anytime on the 802 00:38:18,560 --> 00:38:22,080 Speaker 1: free iHeartRadio app. And remember you can pay less tax 803 00:38:22,239 --> 00:38:26,120 Speaker 1: with Maggie Tax Program. Content provided by Maggie Tax Wealth 804 00:38:26,120 --> 00:38:29,520 Speaker 1: and Advisors. Call them at eight three three Maggie Tax 805 00:38:29,680 --> 00:38:34,920 Speaker 1: or visit them online at Maggietax dot com