Taxes and Retirement Tax-Traps
Did You Know
that if you withdraw $50,000 from your 401(k), the IRS could take $20,000?
if you leave $500,000 in your 401(k) to your spouse or kids, the IRS could take $200,000?
that up to 85% of your social security income could be taxed if your income (including 401 k ) is over $40,000 on a joint tax-return? See calculator.
Medicare Part B premiums are needs tested, so your monthly premiums could triple if you make a lot of money (including your 401 k distributions)?
Taxes. Where are future tax rates going?
Taxes will play a vital role in the future, and may dramatically impact your retirement. Currently the United States government has more than $115 trillion in unfunded liabilities, and more than $17.9 trillion in debt (Source: www.usdebtclock.org). How are we going to pay off these debts? The only way the government can generate revenue is through taxes. With the exception of a few years in the mid-1990s, each year the US Government has spent more money that what it received in taxes. This spending has resulted in the significant amount of past debt that we have to pay off. Many experts believe we need to both cut government spending and increase taxes to repay the $17.9 trillion we owe.
Consider this quote:
“We would need to increase tax rates across the board by about 2.5 times today’s level to close the financing gap.”
— David WalkerFormer Comptroller General & Head
Of the US Government Accountability Office
Request more information on the future of taxes and what you can do to protect your retirement income with The Family Retirement Plan.