Let’s take a look at a situation where the client has a Traditional IRA for retirement income, but is very concerned about income taxes during retirement and fears it may reduce net income from the IRA.

The problem is rising taxes will reduce spendable income from Traditional IRA distributions and taxable distributions could trigger taxation of Social Security benefits. Retirement distributions from the Traditional IRA will be taxed when received. If tax rates go up during retirement, much of the tax-advantages for contributing to the IRA will be lost.

Impact’s Qualified Plan Concepts shows this concept in a compelling way and makes things much easier for the client to understand.

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