Taxes are a necessary part of life, but they don’t have to be such a burden. There are various tax management and preparation techniques and methods that can be used to reduce the amount of taxes you pay and optimize the deductions and credits available to you, both today and in the future. While CPAs and tax planners are an essential part of tax planning year-to-year, it is also important to consider the long-term taxable effects of your investment and retirement savings decisions. In doing so, you may set yourself up to have enormous tax control in retirement when you likely will need it most.
Tax-free income is the ability to withdraw from federally qualified accounts in retirement without those withdrawals triggering ordinary income tax. Because we don’t know how future tax policy will change, having tax free income give you the flexibility to deal with the ever-changing tax policy of Federal, State and Local authorities and provides you with a place to secure money when unexpected expenditures pop up – without complicating your tax filing.