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Tax Planning for Early Retirement: The Great Resignation

Planning for Early Distributions and IRS Notice 2022-6, Healthcare, Capital Gains and Investment Income, Social Security

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Thursday, May 26, 2022

Recorded event now available

This webinar will provide tax-saving recommendations for tax professionals advising clients who are considering early retirement. Our retirement planning expert will provide advice for healthcare planning, minimizing investment and capital gains tax, key tax age thresholds, and meeting exceptions to early distribution penalties, including new IRS Notice 2022-6: Determination of Substantially Equal Periodic Payments.

Description

Lately, we have heard a great deal about the Great Resignation. Many are calling it the Great Retirement. More people retire before age 59 1/2, not realizing that they will be subject to substantial penalties if they take distributions from their retirement accounts. There are exceptions to the early distribution penalty. The IRS recently made it easier to take money out of your retirement accounts before age 59 1/2.

In addition to retirement withdrawals, there are significant tax differences between traditional and Roth IRA contributions and withdrawals. Tax planning can help negate the tax impact of IRAs and capital gains. Social Security planning can increase the amount a taxpayer receives monthly and reduce the taxes paid on this income.

As taxpayers approach specific ages, they should recognize particular tax issues. Among these are tax considerations when a taxpayer reaches ages 65, 55, and 59 1/2. Tax professionals working with clients contemplating or approaching retirement, particularly early retirement, need to comprehend the impact of decisions made on tax liability.

Listen as our veteran federal tax panelist provides tips for reducing taxes and eliminating penalties paid on income received for retirees.

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Outline

  1. Tax planning for early retirement
  2. Age thresholds
    1. Age 65
    2. Age 55
    3. Age 59 1/2
  3. Investment planning
    1. Investment income
    2. Capital gains
  4. Retirement accounts
    1. Early distribution penalties
    2. Exceptions to early distribution penalties
    3. IRS Notice 2022-6: Determination of Substantially Equal Periodic Payments
  5. IRAs
    1. Traditional
    2. Roth
  6. Social Security planning

Benefits

The panel will cover these and other critical issues:

  • Tax planning approaching specific age thresholds: 65, 55, 59 1/2
  • How Social Security planning can increase benefits received and taxes paid
  • How IRS Notice 2022-6 eases taxes paid on distributions by retirees
  • Methods to limit taxes paid on capital gains for retirees

Faculty

Pon, Lawrence
Lawrence K.Y. Pon, CPA/PFS, CFP, EA, USTCP, AEP
Tax Attorney
Pon & Associates

Mr. Pon has been in practice since 1986 providing comprehensive tax and financial planning, tax preparation and...  |  Read More