Wes Parker photo
AW Parker logo

Wes Parker, EA, CAA

 

AW Parker, P.C.

7990 Trinity Road, Suite 110

Cordova, TN 38018

 

Phone: 901-794-3528

Fax:     901-794-8354

 

Email: wes@awparker.com

2023 Tax Planning Guide

Plan for Retirement

Senior couple meeting financial adviser for investment

The steps you take today preparing for retirement will shape your financial picture in retirement.


There are a variety of retirement savings vehicles to which you can contribute, depending on your employment. They include traditional and Roth IRAs, Simplified Employee Pensions (SEPs), SIMPLE plans, and 401(k), 403(b) and 457 plans.


Contributing to most of these retirement vehicles reduces your taxable income today while your money potentially grows tax-deferred over time. It is time that is key. The longer you contribute, the more likely you will prepare for a retirement of your choosing. At a bare minimum, take advantage of the maximum match your employer may make to your 401(k) account.


When changing jobs, roll over any retirement funds directly into an IRA to avoid tax and potential early withdrawal penalties.


ROTH IRAs
Roth IRAs offer a number of advantages you can’t find in other retirement accounts. While contributions are made after tax, qualified distributions are tax-free and there are no required minimum distributions during your lifetime.


Contributing to a Roth IRA makes sense if you do not need the tax deduction now or want tax-free distributions later. Tax-free income from a Roth IRA may permit you to leave other retirement accounts alone until you must take RMDs from them.


You may also want to consider rolling over a traditional IRA to a Roth IRA to avoid paying higher tax rates in the future. This makes sense for people who may have a relatively down income year, but have the liquidity to pay the tax bill for that year without tapping a retirement account. If you are in a higher tax bracket now and planning to retire soon, a rollover may not make sense for you.


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

AW Parker, P.C. and LTM Client Marketing are unrelated companies. This guide was created by LTM Client Marketing and was not written or created by the named financial professional and does not necessarily represent the views and opinions of Avantax Wealth Management® or its subsidiaries.
Avantax affiliated advisors may only conduct business with residents of the states for which they are properly licensed and registered. Securities offered through Avantax Investment Services, Member FINRA, SIPC, Investment advisory services offered through Avantax Advisory Services, Insurance services offered through an Avantax affiliated insurance agency. Not all products and services are offered by all financial professionals. Products and services listed may only be offered by properly licensed individuals.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.