The Floridant - Retirement Account Withdrawals: Key Considerations

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Retirement changes the role of your savings. During your working years, the focus is generally on building retirement assets. Once retirement begins, the focus may shift toward using those assets to help support ongoing expenses.

SARASOTA, Fla. - Floridant -- Understand Your Account Types

Retirees may have traditional IRAs, Roth IRAs, employer-sponsored retirement plans, and taxable investment accounts. These accounts can have different tax characteristics.

Withdrawals from traditional retirement accounts are generally taxable, while qualified Roth IRA distributions generally receive different tax treatment. Taxable investment accounts are subject to their own rules.

Because of these differences, the timing and source of withdrawals can affect a person's taxable income.

Consider Taxes and RMDs

Taxes can be an important part of retirement-income planning. Withdrawals from traditional retirement accounts, along with other sources of income, may affect an individual's tax situation.

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Required minimum distributions, or RMDs, are another consideration. Federal rules establish requirements for certain retirement accounts, including when distributions generally begin and how amounts are calculated.

Because tax laws and retirement account rules can change, current information should be reviewed when making withdrawal decisions.

At the same time, avoiding all investment risk may create other considerations, including the potential impact of inflation over a long retirement.

A retirement-income plan may therefore consider spending needs, investment risk, liquidity, and the possibility that retirement could last for many years.

There is no guaranteed withdrawal rate or investment strategy that will work for every retiree.

Review the Strategy Over Time

Retirement planning does not necessarily end when someone leaves the workforce. Income needs, tax rules, investment conditions, healthcare expenses, and personal circumstances can change.

This material is provided for informational and educational purposes only and should not be construed as investment, legal, tax, or accounting advice. Past performance is not indicative of future results. Investing involves risk, including possible loss of principal.

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LaBelle is an Investment Advisory Representative of Realta Investment Advisors, Inc. Realta Investment Advisors, Inc. is not affiliated with Gulf Coast Wealth Advisors. Investment Advisory Services are offered through Realta Investment Advisors, Inc., a US SEC Registered Investment Advisor, 1201 N. Orange St., Suite 729, Wilmington, DE 19801.

Realta Wealth is the trade name for the Realta Wealth Companies. The Realta Wealth Companies are Realta Equities, Inc., Realta Investment Advisors, Inc., and Realta Insurance Services, which consist of several affiliated insurance agencies.

For more information about Jeff LaBelle and retirement planning, visit https://gulfcoastwealthadvisors.com/.