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.

Key Wealth, Key Private Bank, Key Family Wealth, KeyBank Institutional Advisors and Key Private Client are marketing names for KeyBank National Association (KeyBank) and certain affiliates, such as Key Investment Services LLC (KIS) and KeyCorp Insurance Agency USA Inc. (KIA). 

KeyBank Institutional Advisors is the brand name under which KeyBank National Association (KeyBank) offers investment management and fiduciary services to institutional clients.

Any opinions, projections, or recommendations contained herein are subject to change without notice, are those of the individual author(s), and may not necessarily represent the views of KeyBank or any of its subsidiaries or affiliates.

This material presented is for informational purposes only and is not intended to be an offer, recommendation, or solicitation to purchase or sell any security or product or to employ a specific investment strategy. 

KeyBank, nor its subsidiaries or affiliates, represent, warrant or guarantee that this material is accurate, complete or suitable for any purpose or any investor and it should not be used as a basis for investment or tax planning decisions. It is not to be relied upon or used in substitution for the exercise of independent judgment. It should not be construed as individual tax, legal or financial advice.

KeyBank does not give legal advice.

Non-Deposit products are:

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