Nationally, Americans’ retirement assets total more than $14.5 trillion. Even considering the recent bear market, this amount is up significantly over the last decade.
No matter the amount of your retirement assets, proactive planning is critical because of the sometimes confiscatory taxes these assets are subject to – up to 70% or more in certain circumstances. As you may know, traditional retirement assets are not subject to income tax until withdrawal – and because the withdrawals consitute income, the larger the withdrawal, the higher the tax rate. If you’re like many of our clients, you want these assets to grow to the maximum extent possible, since assets not taxed until withdrawal grow much faster than assets that are taxed every year.
I recently hosted a seminar on Asset Protecting IRAs and Qualified Plans (which includes 401(k)s, defined contribution plans, defined benefit plans, etc.) and learned several strategies that can help defer and perhaps eliminate the tax liability of these hard-earned assets, while at the same time legally protecting them from creditors. These strategies can also help coordinate retirement plans with your overall estate and financial planning objectives to ensure that those objectives are met.
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