Retiring early? Enjoy the tax fruits of your labor — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Retiring early? Enjoy the tax fruits of your labor

by on
in Employment Law,Human Resources

So, you’ve decided to retire early. Congratulations! But before you devote your life to perfecting your golf swing or trotting around the globe, make sure your financial house is in order.

Here are several key tax-saving strategies for early retirees:

Dilemma: to roll it over or not to?

If you work as a company employee (as opposed to being self-employed), your main priority is to figure out what to do with your qualified retirement plan accounts: 401(k), profit-sharing, stock bonus plan, etc.

Many people roll the whole shebang into an IRA. That may make sense because you can manage your retirement funds while you continue to defer tax on the income that they’re generating.

A rollover makes even more sense now that five-year income averaging is no longer available on lump-sum distributions— it expired in 2000—and 10-year averaging is available only for certain retirees born before 1936. (RR, 5/29/06)

Note that you can’t roll...(register to read more)

To read the rest of this article you must first register with your email address.

Email Address:

Leave a Comment