3 Things Retirees Need to Know Ahead of the Tax DeadlineThe Street
The deadline for filing your taxes (looking at you April 15) is coming up rapidly, and retirement investors may not realize their full investment potential. TheStreet's editor of Retirement Daily, Bob Powell, walks us through a few things retirees or hopeful retirees need to know. Income Tax Bracket Planning This is number one, Powell says. "How do I make sure that I'm not taking income from dividends, capital gains, or earned income, or social security that starts bumping me up into the next highest tax bracket?" So what to do? "You want to start thinking about being very tax efficient with your income." Avoid This Cash Penalty Please. Don't frustrate your spouse and don't hurt your financial position. "If you're turning 70 and a half, you have to start taking required minimum distributions from your IRA," Powell said. "No one likes doing that. Everyone forgets about it. Don't forget about it because there's a penalty you need to pay if you don't." Roth IRA Conversion Some people can convert money in their traditional IRA and convert that into a a Roth IRA. One does have to pay taxes on that move, but will only bring his or herself up into the next highest tax bracket, which won't make a huge difference. So what does this really do for you? "It gives you an account from which you can pull money tax free forever," Powell said. Will I Have Enough Money to Retire? Want to learn about retirement planning from some of the nation's top experts? Join TheStreet's Robert "Mr. Retirement" Powell live in New York on April 6 for our Retirement Strategies Symposium. For a limited time, tickets are available for $99 for this full-day event. Check out the agenda, learn about the speakers and sign up here.