Retirement Income & Taxes 

It is officially tax season! It can be challenging to navigate taxes in retirement because your tax situation can be significantly different compared to during your working years. You may even find yourself in a new tax bracket. Therefore, it is important to know how common sources of retirement income are taxed at a federal and state level.

Once in retirement, you may have various sources of income, however, not all income is considered taxable income, such as life insurance proceeds.

For more information on which retirement income is taxable, click here to read “How the IRS Taxes Retirement Income.”



If you’re interested in seeing how all 50 states tax retirees, click here. 

We understand that questions may arise when preparing to file your taxes. If you have any questions or concerns, please contact our office at (518) 584-2555.

 

RMD Penalty 

Required Minimum Distributions (RMD) are annual withdrawals that an individual must take from their pre-tax retirement accounts (traditional IRAs, 401(k)s and 403(b)s) once they reach a certain age; specifically, age 70.5 for those born on 6/30/49 or earlier, age 72 for those born 7/1/49 through 12/31/50, age 73 for those born 1/1/51 through 12/31/59, and age 75 for those born after 1/1/60.

ROTH IRAs do not require RMD because during the owner’s lifetime they have already paid taxes on the dollars invested.

RMDS must be taken annually by December 31st, but what happens if you miss your RMD?

Here at SFS, we are diligent about monitoring our clients’ accounts and their required minimum distributions. For those who don’t work with a financial advisor or working elsewhere and have missed your RMD, attached is a process you can follow that will help get you up to date on your RMDs.

Click here to read how you are able to draft a “RMD Penalty Waiver Letter Sample.”

 

Did You Know?

• A whopping 84% of retirees who reached RMD age were limiting their retirement account withdrawals to the minimums that are required, a JPMorgan Chase study found. ₍₁₎
• You can always withdraw more than the minimum — the RMD is a floor, not a ceiling. ₍₂₎
• If you have more than one IRA or 403(b) plan, the IRS allows you to take your total IRA RMD from just one of them. ₍₃₎
• If you have multiple 401(k)s or 457(b)s, you must pull an RMD from each account separately. ₍₄₎

 

Golden Years: Travel Destinations for Retirees 

Retirement is an ideal time to visit the places you have been dreaming of. Take a look at "Golden Years: 12 Best Travel Destinations for Retirees"

Which includes a list of top destinations within the U.S. and across the globe that only a retiree with lots of time can explore properly.

Included is the best time of year to visit, top attraction and why it's a good fit for a retiree.

 

Save The Date!

We hope you can join us at our 13th annual Shred Event!

An event that is free to the public, rain or shine.

Taking place this year on Saturday, May 4th from 9am to 11am.

We will be in the back JC Penny Parking Lot at The Wilton Mall.

Partnering with Confidata, a paper shredding service that helps protect your identity by shredding and recycling your documents. No need to worry about the staples, rubber bands or paper clips!

This year we are partnering with the members on the Saratoga Springs High School Tennis Program! Monetary donations will be accepted to help benefit their program.

Stay tuned for more details!

 

Start of Spring in Saratoga Springs 

The Saratoga County Chamber of Commerce is proud to present the return of Saratoga County Restaurant Week! Click here to learn more and see participating restaurants for breakfast, lunch and dinner specials from March 6th- March 14th. 

Take a look at the event calendar for more events happening this month around Saratoga Springs.

 

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