Defer No More? Part II – The Year of the Roth

Gretchen Miller MBA, CFP®, CDFA®, Key Bank Wealth Institute

<p>Defer No More? Part II – The Year of the Roth</p>

In a rising tax environment, deferring income and taxes may be more costly and tax inefficient over time for taxpayers in the highest brackets. Many people hold too much wealth in tax deferred accounts, which can be inefficient and obscure what their rate will be in retirement. However, there are many ways to reduce your tax deferred account balances.

Explore the key takeaways and download our full report in PDF.

Key Takeaways

  • Tax rates will be higher in the future.

  • Qualified Roth distributions provide tax free income for you and your spouse for life with NO required minimum distributions (RMD) and tax free income to your heirs for 10 years after the last spouse dies.

  • Roth accounts establish a tax diversified income stream that allows draws from different buckets according to tax treatment to manage your tax liability in retirement.

Download the full report in PDF.

Roth Strategies

The Key Wealth Institute is a team of highly experienced professionals from across wealth management, dedicated to delivering commentary and financial advice. From strategies to manage your wealth to the latest political and industry news, the Key Wealth Institute provides proactive insights to help grow your wealth.

The Key Wealth Institute is comprised of a collection of financial professionals representing Key entities including Key Private Bank, KeyBank Institutional Advisors, and Key Investment Services.

Any opinions, projections, or recommendations contained herein are subject to change without notice and are not intended as individual investment advice.

This material is presented for informational purposes only and should not be construed as individual tax or financial advice.

Bank and trust products are provided by KeyBank National Association (KeyBank), Member FDIC and Equal Housing Lender. Key Private Bank and KeyBank Institutional Advisors are part of KeyBank. Investment products, brokerage and investment advisory services are offered through Key Investment Services LLC (KIS), member FINRA/SIPC and SEC-registered investment advisor. Insurance products are offered through KeyCorp Insurance Agency USA, Inc. (KIA). KIS and KIA are affiliated with KeyBank.

Investment and insurance products are:

NOT FDIC INSURED • NOT BANK GUARANTEED • MAY LOSE VALUE • NOT A DEPOSIT • NOT INSURED BY ANY FEDERAL OR STATE GOVERNMENT AGENCY

KeyBank and its affiliates do not provide tax or legal advice. Individuals should consult their personal tax advisor before making any tax-related investment decisions.