Timing is everything
Often the difference between a sizable tax bill and one a bit more palatable is how well you plan your spending and distributions. For example, maybe you have been planning to donate money to your favorite charity but have not yet done so. The best time to do this may be in a tax year when you have withdrawn more funds from your retirement plan, thus lowering your taxable income.
Or say you want to take a large distribution from your retirement plan savings to buy a second home. You can plan in advance to lower your tax base in other ways (e.g., by receiving less money from other retirement accounts, donating money to charity, writing off investment losses, etc.) to offset the effect of the large distribution.
Representatives of GWFS Equities, Inc. are not registered investment advisers, and cannot offer financial, legal or tax advice. Please consult with your financial planner, attorney and/or tax adviser as needed.
