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Ed likes to say that taxes don’t stop in retirement – they’re really just getting started. I’d say he’s right about that insofar as higher income retirees go – you’ll be paying taxes on part of your Social Security, and probably surcharges on Medicare premiums. Those aren’t technically taxes, but they sure feel like it when you’re paying them. Drawdowns from tax-deferred IRAs and 401ks are taxed as ordinary income…and possibly at high rates.

The IRS’ recently released proposed regulations on how to handle required minimum distributions under the Setting Every Community Up for Retirement Enhancement (Secure) Act of 2019 are effective now.

While the IRS’ recently released regs “are called ‘proposed’ regulations, they are not like proposed tax laws which are not effective until signed into law,” Ed Slott of Ed Slott & Co.told ThinkAdvisor in a recent email.

Putting money into a 401(k) is simple. Taking money out often requires an exit strategy.

The tax breaks baked into retirement accounts don’t last forever. Retirees or their heirs eventually must start draining their balances by taking annual withdrawals known as required minimum distributions or RMDs, triggering tax bills.

Understanding how new tax situations this year could affect your tax return in 2023 could put you a step ahead of the game. CPA Ed Slott joins Wall Street Journal Your Money Briefing host J.R. Whalen to discuss.

A sweeping retirement bill, the Securing a Strong Retirement Act of 2022, or Secure Act 2.0, that passed the House late Tuesday increases the required minimum distribution age from 72 to 75 in stages — over 11 years — and reduces the 50% penalty for missing an RMD, Ed Slott of Ed Slott & Co.told ThinkAdvisor on Wednesday.

The bill, which passed the house by an overwhelming 414-5 vote and is expected to be taken up soon by the Senate, also includes “lots of ‘Rothification,’” Slott said, “meaning Congress is stepping up Roth contributions.”

Americans could stash more in their 401(k)s and sit on their nest eggs longer under a House bill that aims to boost individual retirement savings.

The bill, passed Tuesday by a vote of 414 to 5, raises contribution limits for older workers, and lets companies offer employees a small cash bonus for signing up for the retirement plan. The bipartisan measure, which some are referring to as Secure Act 2.0, would build on retirement-policy changes enacted in 2019 that, among other things, raised the age people were required to start withdrawing money from retirement accounts to 72 from 70½.

If you dread tax day every year, here’s a bit of good news: Your tax burden probably will lighten when you retire.

You’ll still pay taxes on income you receive from sources that haven’t been taxed yet, such as 401(k) and individual retirement accounts or a defined benefit pension.Your Social Security benefits also may be taxed, depending on your income

Christine Benz: Hi, I’m Christine Benz from Morningstar. We’re coming into IRA season, and few people understand the ins and outs of IRAs as well as tax and retirement planning expert Ed Slott. He is here to discuss some mistakes and things to watch out for in the realm of IRAs.

Ed, thank you so much for being here.

If you didn’t put the maximum amount of money into an individual retirement account or health savings account last year, you still have about one month to do so for 2021.

The deadline for 2021 contributions is April 18, 2022, the same day individual tax returns are due.

Christine Benz: Hi, I’m Christine Benz from Morningstar. The backdoor Roth IRA was reported to be on the chopping block, but it’s lived to see another day. Joining me to discuss what you need to know if you’re considering a backdoor Roth contribution is Ed Slott. He is a tax and retirement planning expert.

Ed, thank you so much for being here.