Jill on Money with Jill Schlesinger Looming Tax Issues?
Dec 23, 2024
Discover the challenges business owners face in managing finances and the benefits of flexible financial solutions. Explore strategic approaches to retirement withdrawals from 401(k) accounts and the tax implications of required minimum distributions. Dive into the complexities of pension and social security decisions, emphasizing the importance of savings and spending strategies. Learn how proactive planning can enhance financial stability and understand the nuances of managing assets and taxes—all crucial for a secure retirement.
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Donna's Retirement Question
- Donna, retired for four years, wants to know when to withdraw from her 401(k) to minimize taxes.
- She lives on a modest pension and plans to take Social Security soon.
Special Needs Trust Advice
- Jill advises Donna to confirm with her sister if they've set up a special needs trust for her disabled daughter.
- This trust can protect assets while maintaining eligibility for Medicaid benefits.
Managing 401(k) Growth
- Donna is worried about her 401(k) growing significantly and increasing her tax burden due to RMDs.
- Jill suggests withdrawing some money now and potentially delaying Social Security.