How to Move Asset Between Tax Buckets

There are many methods available to right-size a bloated 401k or IRA account and beef up your Post-Tax asset. Tax buckets may be categorized as Taxable, Tax-Deferred, Pre-Tax, or Post-Tax accounts. Account examples and tax treatments are summarized in the table below. Detailed account characteristics are captured in “Tax Treatment of Investment and Retirement Accounts.” …

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Modeling a Tax-Free Retirement Scenario

Using an advanced Tax-Free Retirement Calculator, we show how to implement a tax-optimized savings plan that will achieve ≈0% tax at retirement. First, let us look at the Tax-Free Retirement Calculator from FinCrafters App. It is a more advanced version of the Retirement Planning Calculator discussed in “Retirement Scenarios.” It enables you to figure out …

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Performance Comparison of Retirement Savings Buckets

Pre-Tax and Post-Tax buckets perform better than Tax-Deferred and Taxable. However, Post-Tax accounts provide the best shelter from future taxes. Tax buckets may be categorized as Taxable, Tax-Deferred, Pre-Tax, or Post-Tax accounts. Account examples and tax treatments are summarized in the table below. Detailed account characteristics are captured in “Tax Treatment of Investment and Retirement …

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Tax Treatment of Investment and Retirement Accounts

Post-Tax accounts, both retirement accounts and non-retirement investments, provide the best shelter from taxes. We have classified various investment and retirement accounts based on their tax treatment. The tax treatment differs between new contributions made to the account, growth from investments and money taken out in the form of a withdrawal or distribution. Withdrawals after …

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