People still working can plan now to take advantage of strategies to create retirement income sources that won’t be taxed.
According to Yahoo Finance, some require advance planning, while some are provided by others such as family members.
Here are six income sources that can give you tax-free income:
- Roth IRA withdrawals are tax-free, so you may want assets in a Roth IRA.
- An inheritance is often tax-free, and most people are likely to have one in their lifetime.
- Municipal bond dividends are non-taxable, and returns can be fairly attractive.
- Health Savings Account (HSA) withdrawals aren’t taxable when used to cover healthcare expenses.
- Social Security payments aren’t taxable in some situations depending upon if you still work part-time.
- Life insurance proceeds are tax-free and are likely if you are the designated beneficiary.
IRA and 401(k) accounts can be Roth accounts, which means you have no tax deductions while working, but you can begin tax-free withdrawals at age 59 and a half if you begin the account as an IRA.
Council of Seniors Wants Senior Life to Be Fulfilling
Extra retirement income eases the impact of inflation. Here at Council of Seniors, we’re working tirelessly to get Congress to pass The SAVE Benefits Act. Because the annual Social Security cost-of-living adjustment (COLA) has been insufficient over several years, this legislation is a must. Once it passes, seniors will be reimbursed the $581 missing from their benefits.
Sign our petition without delay and get friends and neighbors to help, too. Let’s tell Congress about the growing number of Americans supporting this bill.
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