How a SLC couple saved $194,783 in taxes in retirement

How a SLC couple saved $194,783 in taxes in retirement

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Estimated read time: 4-5 minutes

Millions of Americans are concerned that their taxes could go through the roof.

And it's for good reason.

The Wall Street Journal recently reported the latest House proposal includes "the largest tax increase since 1968."

Unfortunately, these higher taxes won't just impact the wealthy.

Many tax experts and economists believe all hard-working Americans will pay the price.

And here's something most people haven't considered: These higher taxes could hit just as millions of baby boomers head into retirement.

And that would have devastating consequences for their nest eggs — especially their tax-deferred IRAs and 401Ks.

You have more control over how much you pay in taxes in retirement than any other time of your life

If you take advantage of some simple tax-planning strategies now, you could save yourself tens of thousands, if not hundreds of thousands of dollars.

To show you just how powerful tax planning can be, here is a story of how we recently helped a family from Salt Lake City save a bundle in taxes…

Tom and Margaret are in their early 60s and have been married for nearly 30 years.

They've worked hard and have been good savers all their lives. In fact, they've managed to save $1.3 million for retirement.

It was obvious Tom thought this meeting was going to be a waste of time. He didn't need any help. He and Margaret had achieved their retirement savings goal and he was certain they could retire without a hitch.

But as we dove into the conversation a little further, we discovered a significant problem.

Nearly 100% of Tom and Margaret's $1.3 million was in tax-deferred IRAs and 401Ks.

In other words, they still have to pay taxes when they withdraw this money in retirement.

We ran a quick analysis and confirmed their total tax bill on these accounts would be a grand total of $677,000.

This was a devastating blow for Tom and Margaret because they were so excited to retire soon.

At that moment, they thought their only options were to make drastic cuts to their lifestyle in retirement, or to postpone their plans and continue to work for another 5 to 10 years.

But we informed them that if they took advantage of some tax-planning strategies now, they could dramatically reduce these taxes in retirement. Now we had Tom's attention.

One of our fiduciary advisors uncovered an opportunity that could reduce Tom and Margaret's tax bill by $194,783.

This was enough money for Tom and Margaret to retire on their original terms.

"When thinking about tax planning, choose to think of it as tax savings instead." –Kiplinger

Needless to say, $194,000 could go a long way in retirement.

How a SLC couple saved $194,783 in taxes in retirement
Photo: fizkes/Shutterstock.com

But this type of savings is not unusual. In fact, we often meet with families who could save even more money.

Most Americans believe they don't have any control over their taxes.

That's not only wrong, it's also a missed opportunity.

These are the same people who prepare and file their taxes every year with the help of a CPA. But aside from some obvious deductions that might save them a few bucks, what's done is done.

If you want to save on taxes in retirement, the biggest savings are realized with tax-planning.

Here you're looking forward, not backward. And the savings are often significant.

Do you wonder how much money you could save in taxes in retirement?

Learn exactly how much money you could save with our B.O.S.S Retirement Tax-Savings Analysis.

It's free for our fellow Utah families. We make it simple and easy and there's no obligation.

When you give us a few pieces of basic information, we roll our sleeves up and do the heavy lifting — just like we did for Tom and Margaret. Then we'll freely share the strategies with you so you can see exactly how much money you could save.

To schedule your analysis with one of our fiduciary advisors, click here.

As we like to say to the thousands of families we work with throughout Salt Lake: it's not what you make — it's what you keep!

Ryan Thacker and Tyson Thacker are the Founders of B.O.S.S. Retirement Solutions with 6 offices throughout greater Salt Lake City. They are three-time winners of Utah's Best of State Award.

Advisory services offered through B.O.S.S. Retirement Advisors, an SEC Registered Investment Advisory firm. Insurance products and services offered through B.O.S.S. Retirement Solutions. The information contained in this material is given for informational purposes only, and no statement contained herein shall constitute tax, legal or investment advice. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual's situation. You should seek advice on legal and tax questions from an independent attorney or tax advisor. Our firm is not affiliated with the U.S. government or any governmental agency.

Ryan Thacker and Tyson Thacker for B.O.S.S. Retirement Solutions

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