Join us in this insightful episode as we continue our series on year-end action items, focusing on optimizing your retirement planning. Today, we delve into the intricacies of withdrawing assets, discussing everything from flexible spending accounts to inherited IRAs. We also explore the concept of "gear, not stuff" with insights from Michael Easter, and how making thoughtful purchasing decisions can impact your financial health and the environment. Don't miss our deep dive into tax strategies and the importance of building a resilient retirement plan. Plus, we answer listener questions about decumulation, working with financial advisors, and more. Tune in to take actionable steps toward a secure and fulfilling retirement!

PRACTICAL PLANNING SEGMENT

(00:00) This week we continue to discuss year end action items to optimize your retirement planning

(00:50) We are gearing up for a retirement plan live case study for January. This time we will be focusing on someone who is single with no children.

(02:10) Roger shares an anecdote about having his kitchen cabinets painted and discusses gear versus stuff.

(05:00) Roger discusses the importance of buying high quality items that last.

(07:25) Today we're going to talk about accounts we should consider withdrawing money from before the end of the year. First up are FSA accounts.

(08:14) The next accounts we are going to talk about are inherited pre-tax accounts.

(09:30) If you inherited an IRA prior to January 1, 2020, your required minimum distribution is required to be taken out by the end of this year.

(10:48) What happens if you inherited an IRA after 2020?

(12:25) Since the Secure Act 2.0 started in 2023, the penalty for not taking the required minimum distribution is 25% of what you should have taken.

(13:35) The next type of required minimum distributions we are going to talk about are those that are age related for original IRA owners.

(15:03) Proactively taking qualified distributions can lower your overall tax rate in retirement.

LISTENER QUESTIONS

(20:44) Next Month, we'll focus on answering some of your questions on AskRoger.

(21:12) The first question comes from Scott about principal versus interest and decumulation.

(28:59) Next, Joy says she needs help with retirement planning and decumulation of assets.

(32:45) Mike asks about decumulation and resilience. How should pre-retirees position retirement assets as they reach the last five years or so before retirement?

(39:11) Tom asks about the five year rule for Roth 401k conversions.

SMART SPRINT

(41:08) Take a look at the items that we talked about in terms of withdrawing assets.

BONUS

(41:45) Roger reads another excerpt from his grandfather's war journal.

REFERENCES

Ask Roger

https://www.rogerwhitney.com/askroger

Michael Easter
https://twopct.com

Dinkytown Calculators- specifically the 10/40 tax estimator
https://dinkytown.net

Schwab Required Minimum Distribution Calculator
https://www.schwab.com/ira/ira-calculators/inherited-ira-distribution-calculator

Six Shot Saturday
https://6shotsaturday.com

Show notes created by https://headliner.app

Join us as we dive into year-end financial planning strategies to optimize your retirement plan. This episode unpacks the essentials of contributing to various accounts like 401(k)s, IRAs, Roth IRAs, HSAs, and donor-advised funds before the year ends. We also discuss Roth conversions and answer listener questions about IRMAA brackets and required minimum distributions. Plus, hear a special tribute to veterans, featuring the first mission of Roger’s grandfather, a WWII bomber pilot. Don’t miss this comprehensive guide to maximizing your retirement savings and honoring those who served!

SMART PLANNING SEGMENT

(01:01) Rock Retirement Club is having its last open enrollment for the year.

(02:26) This month the theme has been to look at year end planning items in order to optimize your plan of record.

(03:40) This week we focus on contributing to assets between now and the end of the year. We will start off by discussing contributing to your 401K account.

(05:30) The second thing we want to look at is contributing to an IRA or Roth IRA.

(08:37) The next account you might consider contributing to is your health savings account.

(10:07) Another thing you might consider contributing to is a donor advised fund or any type of charity.

(15:03) The next one I’ll talk about today is 529 education plans.

(17:00) Another account you might want to contribute to is your after tax investment account.

LISTENER QUESTIONS

(20:00) Roger talks about 51 missions that his grandfather flew during World War II in honor of Veterans Day.

(21:10) Reid is concerned about IRMAA in 2026 regarding Roth conversions.

(24:35) David asks a question about projected required minimum distributions for Roth conversions.

(28:30) Joe asks about tax brackets and Roth conversions.

(31:13) Denise says the more she reads about Roth conversions, the more confused she gets.

SMART SPRINT

(35:00) If you want to try to do some optimization, grab the worksheets from Six Shot Saturday and go through the lists.

IN HONOR OF VETERANS DAY

(35:54) In honor of Veterans Day, I'm going to share some missions from my grandfather to thank all of our veterans.

REFERENCES

Six Shot Saturday

Rock Retirement Club

Retirement Answer Man- FREE Resource Center

Show notes created by https://headliner.app

Welcome to a transformative episode where we delve into year-end financial strategies to optimize your retirement planning. Join us as we discuss tax-loss harvesting with Erin Coe, a seasoned planner and tax expert. Learn how to strategically sell capital assets at a loss to reduce your tax burden and explore the nuances of capital gains, wash-sale rules, and more. Plus, we answer listener questions about Roth conversions and annuities. Don't miss this insightful guide to maximizing your financial health!

PRACTICAL PLANNING SEGMENT

(00:25) Today on the show we begin to explore year-end action items.

(02:23) So now that we're into tax season, we're going to do a primer on tax-loss harvesting with Erin Coe.

(03:59) Tax-loss harvesting is the act of intentionally selling capital assets at a loss

(05:25) Defining what a capital loss is

(08:42)The intent is to reduce taxable income and reduce taxable liability

(10:12) How do you gauge the impact of this?

(13:34) Leave some buffer room to be careful on tax cliffs

(15:35) The wash-sale rule means you can't sell a capital asset and claim that loss and then repurchase it within 30 days

(21:27) What are some gotchas that we need to watch out for when evaluating portfolios?

(22:24) Another problem is those carry forwards, you need to track it every year whether you are using it or not.

(25:38) Tax loss harvesting is not just a December activity, it’s a year-round sport

LISTENER QUESTIONS

(28:05) Greg asks a question about Roth conversions for his older relative

(34:24) Stanley says his wife has a taxable MYGA, multi year guaranteed annuity, and wants to know if he should take the lump sum or roll it into something else.

(40:28) Jay asks about the pie or bucket approach

SMART SPRINT

(46:50) Review your after-tax accounts looking for unrealized losses and examine whether you can use them productively

Join our live event on Roth conversions at livewithroger.com or sign up for the replay at sixshotsaturday.com.

REFERENCES

Dinkytown.net

Turbo Tax

Retirement Podcast Network
Six Shot Saturday

Retirement Answer Man