YOUR FINANCES & TAXES: SEE WHAT'S POSSIBLE
Explore the What-Ifs of Your Strategy to Uncover Tax Advantages
When you structure your finances with tax implications in mind, you may have the ability to influence how much tax you pay and when you pay it.
A new law, the SECURE Act, has passed. This could affect your financial strategy decisions, resulting in potential tax impacts for you and those you love.
The Setting Every Community Up for Retirement Enhancement (SECURE) Act is a new bipartisan bill designed to expand retirement savings. Under SECURE, the age to begin taking required minimum distributions has been increased from 70 ½ to 72 and there is no longer any age restriction on contributing to a traditional IRA. With these changes, come potential tax impacts for non-spouse beneficiaries. Speak with your financial professional and tax professionals to learn how this may affect your retirement strategy.
Thrivent's Exclusive What-If Tax Calculator
When retirement is on the horizon, it's important to make sure you're doing all you can now to minimize the potential tax impacts later. But how do you know which strategies may help you reap the most tax benefits, especially in light of the new SECURE Act? The reality is that the right mix of strategies depends on your unique situation.
The good news: When coupled with the guidance of a Thrivent Financial professional, Thrivent's What-If Tax Calculator can provide valuable insight into the nuances of your own financial strategy. In fact, you may uncover potential tax opportunities where you least expect them.
What-If Tax Calculator
The What-If Tax Calculator is a unique tool that allows you to see how changes you make to your financial strategy could impact your taxes. This exclusive tool only accessible when you work with a Thrivent Financial professional illustrates hypothetical scenarios for you that are based on your preferences and goals.
Finding Your Tax Efficiencies
WHAT IF: You're smart about retirement savings & distributions
As you look toward retirement, you'll want to consider how your retirement accounts will be taxed when it's time to take your money out. For example, if you expect to be in a higher tax bracket when you retire than you are now, and you have a traditional IRA, you'll pay taxes on your contributions when you withdraw the funds. But if you convert to a Roth IRA, you'll pay taxes on your contributions now, when you are potentially in a lower tax bracket. The result: You get to enjoy more of your savings.
WHAT IF: You plan ahead for Social Security income
WHAT IF: Your loved one dies unexpectedly
While nobody wants to think about it, it's important to consider what would happen financially if you or your spouse suddenly passes away, and how that could affect your tax outcome. In many cases, your income could be reduced, and your tax bill could spike due to an increased marginal income tax rate. What steps could you take now to help cover those unexpected tax spikes if the unthinkable happens?
Withdrawals made prior to the age of 59 ½ may be subject to a 10 percent federal tax penalty.
Thrivent Financial professionals have general knowledge of the Social Security tenets. For complete details on your situation, contact the Social Security Administration.
Thrivent and its financial professionals do not provide legal, accounting or tax advice. Consult your attorney or tax professional.