Under the current tax code the standard deduction and personal exemptions can neutralize some of your taxable income during retirement. So some taxable monies, around $20,000 a year, can be assimilated into your retirement plan. But Roth IRAs more than likely fit the financial profile of most middle class Americans who are saving for retirement. For this group, deductions lack the economic value. Positioning “after tax” distributions as your first option before your qualified monies may have significant tax favored results, such as lower capital gains treatment as one example. Again distributions from reverse mortgages, cash value life insurance, Roth IRAs and HSA accounts are not taxed and are not includable in the provisional income test or Social Security benefit taxation. Deferring your Social Security benefits to age 70 will maximize your Social Security income and delaying qualified plan monies to age 70½ will allow an additional investment or savings cycle that potentially could increase your account just before retirement. Roth IRAs are not deductible, but they do accumulate tax deferred and at the approved time for distributions are tax-free. Roth IRA income is not includable in the provisional test for Social Security benefit taxation. An individual’s annual contribution to   Read more…