There are many potential problems lurking in the future for all Americans. Whether you’re 35 or 65 years old, we believe that one of your largest risks is the risk of rising income tax rates. No one wants to pass on a large tax bill to their heirs or pay more in taxes than their fair share. But the hidden taxes that are in most people’s IRA’s create a set of unusual challenges and corresponding opportunities that can prove stressful. Find the Solutions Here: http://7taxtraps.com/a-guide-to-a-tax-free-income/

1. 7 Tax Traps
Hidden in your IRA and 401k.
(and how to avoid them)

2. Little or NO control of timing of taxation
1

3. We like to be in control of
our own lives and assets
but when you reach age 70
1/2 your options disappear.
You must take taxable
income whether you need it
at the time or not.

4. Forced Taxationthroughrequired minimum distribution
2

5. These forced taxable
events are called
"Required Minimum
Distribution". The IRS
provides standard tables
that dictate how much of
your prior year ending
balance must be taken
out in the current year.
The determining factor
from the table increases
your distribution each
year.

6. Risk of Rising Income Tax Rates
3

7. In 1954 the highest tax rates were 90%.
The 1970’s saw the top rate at 70%,
Click here to see how rising income tax
rates will effect your future.
and since about 1990 the top income tax
rates have been between 30 and 40%.
70 Year Lows in the Tax Rates We're Paying
70-90%
30-40%

8. Risk of large tax bill passed to your heirs
4

9. When it’s time for your heirs to receive
the balance of your IRA’s they must begin
paying taxes. Depending on the number of
heirs, it’s actually possible that taxes will
be greater than the amount left for any
one of the individual beneficiaries.
Click the image to the right to
calculate how much your
beneficiaries will really
receive.

10. Hidden Tax on Medical Expenses
5

11. When you need money for medical expenses, where will it come from?
Most often it hasto some from your IRA’swhich isadditional taxable income for that year

12. Higher Tax on Social Security and Medicare Plan B
6

13. Social Security benefits become taxable based on how much other
taxable income you receive. This includes income from distributions
from your IRA’s too. In addition, your Medicare Plan B premiums
increase dramatically based on your taxable income.

14. Hidden Taxes on Large Purchases or Expenses
7

15. When all of your savings is
in your IRA or 401k, every
financial decision carries a
tax decision with it. This
fact makes everything
more expensive for the
rest of your retirement

16. Visit us at 7taxtraps.com
Looking for solutions?
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