Retirement Tax Planning


Reducing your tax liability as a retiree is important for getting the most out of what you’ve worked all your life to earn. What you owe in taxes as a retiree is often a function of taking full advantage of standard and itemized deductions and personal exemptions. In certain situations, it may make more sense to accelerate certain retirement distributions when you have excess deductions in order to minimize what you’ll owe in the following year. Additionally, in order to take full advantage of special tax credits for persons 65 years or older, you’ll need to plan carefully and make sure your income doesn’t fall below a certain limit.

At the Woodbury, New York, Stefans Law Group, our tax and estate planning attorneys work closely with retirees in order to create tax and estate planning strategies that reduce tax liability and help plan effectively for the future.

Regardless of whether you’re about to retire or have already done so, we can help you take steps now to ensure that you get the most out of your retirement plan, Social Security and savings. To schedule an appointment and learn how we can help you, contact Woodbury retirement tax planning attorneys link to Contact Us at the Stefans Law Group.

Retirement Tax Planning Issues to Consider

There are several issues that must be considered when looking for ways to reduce your tax liability as a retiree. While the amount of estate planning you undertake can reduce your estate tax, how you manage aspects of your retirement and pension plan is also important. At the Stefans Law Group, we develop retirement tax strategies in regard to the following:

  • 401(k) distributions
  • Pension and annuity income
  • IRA distributions
  • Social Security benefits

 Pension and Annuities

Pension and annuity income is reported using Form 1099-R and may be fully or partially taxable. How your contributions were made will determine the degree to which your pension or annuity is taxable. Contacting your plan administrator to determine what your pension payments will be and what will be taxable will allow you to plan more effectively and take steps that could offset any tax liability you might have if your pension contributions were tax-deferred.

401(k) and IRA Distributions

Since 401(k) contributions are excluded from taxable income, 401(k) distributions are taxable. If you have a Roth 401(k) account, it will be treated like Roth IRA distributions. If you first made a contribution to your Roth IRA at least five years prior to any distribution from it and you were at least 59½ years old when the first distribution was made, your Roth IRA distributions may not be subject to any tax. Otherwise, if you have a deductible or nondeductible traditional IRA, your distributions will be fully or partially taxable, respectively.

Social Security Benefits

The degree to which your Social Security benefits are taxed will depend on your total income from other sources (such as a pension, 401(k), part-time job, etc.). Additionally, whether you are married or married but living apart, single, head of household, or filing jointly or separately will affect how your Social Security benefits are taxed. Working with experienced tax and estate planning attorneys can help reduce the amount of tax liability your Social Security benefits may be subject to.

Contact Woodbury Retirement Tax Planning Attorneys

The tax code can be complicated and confusing, especially when you take into consideration annuities, trusts or other estate planning tools. At the Stefans Law Group, we have the knowledge and resources needed to help you get the most out of your retirement financially by taking steps today to minimize your tax liability.

To learn how we can help you, contact Woodbury tax planning attorneys at the Stefans Law Group today.