There are four tax free income sources during retirement that you should be aware of and strategically employ to manage your annual taxes: Health Savings Accounts, Reverse Mortgage Income, Cash Value Life Insurance and Roth IRAs. Health savings accounts are one of the most underfunded resources in retirement planning. Tax deductible contributions up to $6,550 per couple and a “catch up” provision of an additional $1,000 for those over age 55. You can also do a once in a lifetime transfer from your IRA to your HAS up to the annual contribution limit. You can make tax-free withdrawals for approved medical expenses and premiums. Health savings accounts may be the most valuable tax advantaged source of funds over a lifetime and especially in retirement. You’ll use it. Reverse mortgage income is a housing solution for age 62 and older that may provide tax-free income for life by utilizing collateralized loans on your home equity. The program is called the home equity conversion mortgage (HECM) under HUD, and the FHA insures it. Reverse mortgage income has several flexible applications besides lifetime income that can really benefit retirees in planning their retirement. Cash value life insurance also uses the collateralized loans from   Read more…