Ron Roberts Founder and CEO of Roberts Retirement Group, Interviewed on the Influential Entrepreneur Podcast Discussing Tax Planning for Retirement

December 09, 2024 at 10:43 AM EST

Ron Roberts discusses tax planning for retirement

Listen to the interview on the Business Innovators Radio Network: Interview with Ron Roberts Founder and CEO of Roberts Retirement Group Discussing Tax Planning for Retirement – Business Innovators Radio Network

Ron Roberts, founder and CEO of Roberts Retirement Group, discusses the critical topic of tax planning for retirement. Ron emphasizes the importance of understanding how taxes will affect retirement income, particularly for those utilizing pre-tax accounts like 401(k)s and IRAs. He explains the rules surrounding required minimum distributions (RMDs), detailing the age thresholds for withdrawals based on birth year—70 and a half for those born 1950 & before, 73 for those born 1951 – 1959, and 75 for those born 1960 & later. The conversation provides valuable insights into navigating tax implications in retirement planning, ensuring listeners are well-informed about their financial futures.

When planning for retirement, one critical aspect to consider is Required Minimum Distributions (RMDs). RMDs are mandatory withdrawals that individuals must take from their retirement accounts, such as 401(k)s and traditional IRAs, once they reach a certain age. Understanding the implications of RMDs is essential for effective retirement planning, as failing to withdraw the minimum amount can lead to significant financial penalties.

RMDs are the minimum amounts that the IRS requires account holders to withdraw from their retirement accounts starting at a specific age. According to current regulations, individuals born before 1960 must begin taking RMDs at age 73, while those born in 1960 or later must start at age 75. The amount that must be withdrawn is calculated based on the account balance and life expectancy factors provided by the IRS.

One of the most alarming aspects of RMDs is the steep penalty for failing to withdraw the required minimum amount. If an individual does not take their RMD, the IRS imposes a penalty of 25% (as of 12/2022) on the amount that should have been withdrawn. For example, if your RMD for the year is $10,000 and you fail to take it, you could face a penalty of $2,500. his penalty underscores the importance of adhering to RMD rules, as it can significantly erode retirement savings.

Ron shared: “You can never eliminate… but we can lessen them or mitigate them or plan for taxes.”

Given the potential penalties, it is essential for retirees to plan for their RMDs effectively. Here are some strategies to consider:

Stay Informed: Understand the age at which RMDs begin and the calculation method for determining the required amount. This knowledge will help you prepare for withdrawals in advance.
Evaluate Your Income Needs: If you find yourself in a situation where you do not need the income from your RMD, it is still necessary to withdraw the minimum amount to avoid penalties. Consider how RMDs fit into your overall income strategy.
Consult a Professional: Given the complexities surrounding RMDs and their implications for taxes and retirement income, working with a financial advisor or tax expert can provide valuable insights. They can help you navigate the rules and develop a strategy that minimizes tax liabilities while ensuring compliance with RMD requirements.
Consider Roth Conversions: As discussed in the podcast, converting traditional retirement accounts to a Roth IRA can be a strategic move. Roth IRAs do not have RMDs during the account holder’s lifetime, allowing for tax-free growth and withdrawals. This can provide more flexibility in retirement income planning.

Video Link: https://www.youtube.com/embed/DXp9b3RhBNU

About Ron Roberts

Ron was born in Burbank California and grew up in the Mojave Desert. Being the first of six children born to deaf parents, he learned responsibility at an early age. His commitment to family and faith is unwavering. It’s the essence of who he is and the foundation of his business success. Living for a higher purpose and caring for others has always been Ron’s focus.

After high school, he joined the United States Coast Guard where he learned about hard work, discipline, and duty. He enjoyed serving his country and helping to keep people safe. He grew in experience through training, education, and travel. He developed a love for the sea and enjoys boating and sailing with friends and family.

After completing his time with the Coast Guard, Ron served on a mission for the deaf in Chicago for his church. While there, he formed the first deaf scout troop in Chicago for the Boy Scouts of America. Returning from Chicago, Ron attended college in Stockton, California where he met his wife, Julie. They were married in the spring of 1984. In 1991, Ron and Julie moved to Amador County where they enjoyed raising their four daughters in a close knit community. Ron’s hobbies include reading, boating, sports, and traveling with his family. Ron also volunteered at a private school where he taught history and American Sign Language. Family, faith, and community are the most important things that define Ron.

Ron’s chosen vocation as a Retirement Planning Professional allows him to use his experience, his gifts, and his love for family to help people in a very special way. Ron has been in the retirement planning industry since 1990. Founded in 2002, Roberts Retirement has grown over the years to serve families in northern California and around the country.

Ron has served as President of the California Estate Planning Counsel and continues to mentor other retirement planning professionals all across the United States. He is constantly educating himself on the most up-to-date investment strategies and changes in the financial industry. Ron is recognized as a leader in the industry, is a sought-after speaker, and has been featured in Senior Market Advisor Magazine

Learn more: https://www.robertsretirement.com/

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