Tax Planning as an Important Part of Retirement Planning, with Shawn Tewksbury, Massachusetts, New Hampshire

The goal of retirement planning is to get the most out of the assets that have accumulated over the course of one's professional life.  If those assets aren't properly managed and organized, the retiree could end up paying more money in additional taxes.  Shawn Tewksbury, CPA and CFP with Merrimack Valley Financial Advisors, says that with proper planning, most of these taxes can be easily avoided.

Many retirement plans are tax-deferred vehicles, which means that no taxes are paid until a distribution is made.  Tewksbury says that the IRS has said that at age 70 1/2, the IRS requires taxpayers with tax-deferred vehicles to distribute those assets, as a means for the IRS to begin collecting taxes on those assets over the taypayer's remaining lifetime.  If these required minimum distributions, or RMD's are not taken a big penalty will incur, one that is 50% tax on the amount not withdrawn in time. 

Reportable income from CD's, mutual funds or any other interest-bearing accounts can adversely impact the taxes that are due on social security but by using these tax-deferred vehicles, they can minimize or even eliminate taxes, says Tewksbury. 

Shawn Tewksbury  Source:

Shawn Tewksbury


By integrating tax planning and retirement planning together, it can be made sure that income is generated from sources that will have the least tax ramifications against one's social security, adds Tewksbury.  

Shawn Tewksbury can be reached at 978-453-2222 in his Massachusetts office and at 603-224-4990 in his New Hampshire office.  He spoke with Retirement News Today, providing online, on demand, retirement planning video content.

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