Distributions
Several marketing organizations are promoting being able to save 20% to 40% of the income tax on qualified distributions, is this a scam or is there a legal method to do this?
Several marketing organizations are promoting being able to save 20% to 40% of the income tax on qualified distributions, is this a scam or is there a legal method to do this?
Permalink Submitted by Alan - IRA critic on Fri, 2018-05-04 18:10
No way to tell since there are dozens of different promotions floating around. If not scams, there is probably an expensive trade off. Direct IRA distributions must be reported, so perhaps they are proposing putting the money into a new investment like a charitable gift annuity or similar. I would be very careful before committing to anything.
Permalink Submitted by [email protected] on Mon, 2018-05-07 14:26
Positioning oneself to be in the 24% bracket instead of the 32% bracket at the time of qualified plan distributions, would cause one to pay 24% less tax. If able to get to the 22% bracket, that would save 31.25% tax on the qualified distributions. One possible way to do this would be to place all of your income producing non-qualified asssets into a deferred annuity, thus deferring the taxation on those assets, while you take your distributions from the tax-deferred accounts. I don’t see any way to not pay taxes at ordinary income rates on qualified distributions without giving the money to charity (QCD) or some type of charitable deduction.-m