What is Your IRA Exit Strategy?
The other day, someone who has been watching my TV show, Redefining Retirement, called our office and wanted to get a financial stress test. They came into our office and shared their statements, showing they have around $1 million dollars in their IRA. One problem they did not consider is of that $1 million dollars, there is a big chunk that belongs to the IRS. I see this all the time, where people often forget when they go to pull this money out of their retirement plans, the amount of taxes they will have to pay.
Did you know our current nation debt is around $17 trillion dollars and increasing daily? This is equivalent to over $1 million dollars for every taxpayer in the country! When you add government programs, such as Medicare and Social Security, our national debt increases to over $140 trillion dollars. How does this impact you? Imagine all that money (mind you, money that has never been taxed), sitting in your retirement plans. With the US Government spending money like crazy, they need money and they are aware of all the money sitting in retirement plans across the country that has never been taxed. It wouldn't be surprising to see tax rates go up, so the government can try to acquire more of your retirement plans.
I bring this to your attention, because I want you to be aware of the IRS and consider them your silent partner, where every time you pull out money for your retirement plan you have to pay them as well. As you are planning for retirement, you have to consider the tax implications and have a plan in place to minimize these implications. Is it time for you to develop an IRA exit strategy? You can always find the help you may need at Cornerstone Retirement Group by giving our office a call at (775) 853-9033.
You can also tune into Redefining Retirement this Sunday at 5:30pm on Channel 2 News, where we will discuss the 5 reasons that traditional retirement plans can be a problem and how to move your IRA into a more tax-free account.