How to Defuse Your Ticking Tax Time Bomb

Play Video

How to Defuse Your Ticking Tax Time Bomb

For most married couples, there may be a ticking tax time bomb waiting for them later in life during their golden years. This is a problem that most people don’t like to talk about, which they overlook until it is too late to do anything about.

But this issue should be discussed as part of any comprehensive financial plan, as there are ways you may be able to diffuse the problem if you act early.

The time bomb we are referring to goes off when the first spouse passes. They leave the surviving spouse to file taxes as a single person.

Most often, income doesn’t go down much when the first spouse passes, usually only by some lost Social Security. But this cuts their standard deduction in half and their tax brackets jump considerably!

Paying a lot of extra tax to the IRS with a lower standard of living isn’t what most people are longing to do!

If you are married, this could be a ticking tax time bomb waiting for you in retirement one day!

One way you can diffuse this tax time bomb is by utilizing a Roth IRA in your retirement planning.

Taking income from a Roth has no impact on your taxable income or on making your Social Security taxable either. This can be another ticking tax time bomb lurking in retirement!

If you haven’t created a comprehensive financial plan that addresses these future tax issues, contact Jimmy Miller, the founder of Baobab Wealth Management. Jimmy is a Fiduciary Financial advisor who can help you to navigate this and other tax time bombs most people don’t think about until it’s too late.

Get Personalized Help

Please fill out the form below to get started.

Step 1 of 2

*We respect your privacy and will never give your information to any third party.

Get our FREE Expat Guide

Please fill out the form below to receive access to the ultimate guide for navigating the complexities of living abroad.

"*" indicates required fields

Name*
This field is for validation purposes and should be left unchanged.

*We respect your privacy and will never give your information to any third party.

Get your FREE Divorce the IRS Retirement Kit

View and download resources from the Divorce the IRS Retirement Kit and learn how to set yourself on a path to a tax-free retirement.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Privacy policy: we hate SPAM and promise to keep your email address safe

Get FREE Chapter

Please fill out the form below to receive the first chapter of Divorce the IRS: How to Defuse Your Biggest Tax Time Bombs Before You Retire in your email.

"*" indicates required fields

Name*
I would like to be notified of new:*
This field is for validation purposes and should be left unchanged.

*We respect your privacy and will never give your information to any third party.