CPA Discloses: 12 Sources of TAX FREE Retirement Income

This video discusses 12 sources of tax free retirement income. The video starts off with more conventional sources of tax free retirement income such as a Roth IRA and municipal bond income, and moves toward more unique income streams as the video progresses.
Importantly, 50%+ of the sources of tax free income most retirees have access to when they leave the workforce.
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Disclaimer: this video is for educational and entertainment purposes only and is not meant to be a substitute for legal, accounting, tax, or professional advice. If you have any specific questions about any legal, accounting, tax or other professional service matter you should consult the appropriate professional services provider.

[@farmerjones5479]

1) Roth IRA 2) Municipal Bonds 3) Home sale 4) Life insurance 5) Long term disability 6) Long term capital gains 7) Health Savings Account 8) child support or alimony 9) Inheritance 10) Gifts 11) Federal Disaster Relief 12) Investment Basis (aftertax $)

[@user-rx5fd6po9z]

Thanks, you just saved me 14 minutes of my life.

[@peterwest2933]

Ditto

[@stingray8585]

I recently have retired and your videos have given me a lot of help in asking questions and knowing how to look for certain things etc. I never withdrew from my HSA and now I have 20k for when I need it. Thank you sir!

[@dexterclearwater2341]

Holy Schmidt! I enjoy your videos!

[@jimmyamico4713]

Hi Geoff, Very helpful and informative video as always … you’re the best thank you for all the hard work that you do. It’s appreciated more than you will ever ever know.❤

[@walterlee7371]

Holy Schmidt! Very useful and important info ! THANKS A LOT !

[@OurRetireEarlyJourney]

Great stuff! Love the information around capital gains and dividends

[@GabrielSBarbaraS]

Let me add another indirect income source which is the power I produce from my paid off 15 yo roof solar system. the power I receive from the sun is not taxed, does not have any fees and the power company in NC ( at least for now ) pays me retail price for any excess we produce ( again I don't need to claim that as income either ) Think about this if you are about 55 yo and want some tax free indirect income when you retire. 😎😎😎😎😎

[@denisehill1215]

I donate plasma

[@keithmachado-pp6fv]

Great video as always. I was surprised you said the amount of gift over $18k was taxable to the recipient. My understanding was that you could give up to the estate tax exemption as long as the proper tax form was filled out and there would be no tax. I read elsewhere that was one planning item to gift now while the higher exemption is in place as the IRS had indicated there would not be a “clawback” once the limit is reduced in 2026. Can you clarify?

[@sledboy1567]

At the end of the discussion on gifts which starts at about the 11:12 mark, a comment is made at 11:32 saying that when someone receives more than $18,000 (as a gift in 2024), that amount in excess of $18,000 becomes taxable. I don't think this is generally correct, at least regarding federal income tax for the gift recipient. IRS Pub 525 says on p34 under Gifts and Inheritances: "In most cases, property you receive as a gift, bequest, or inheritance isn't included in your income." Am I missing something?

[@heidikamrath1951]

I think you are correct. That above the 18K max needs to be acknowledged with a tax form filed by the giver as that amount will ultimately count toward the 13Million or whatever it is that they can bequeath tax-free. That’s my understanding, anyways. Happy to be corrected if someone out there knows for sure…

[@hm51008]

My understanding is anything in excess of 18,000 (2024) would count towards the $13.61M estate tax limit for the giver. It would not be taxable income to the receiver.

[@vinnyg2619]

Interesting figure that was used for High Deductible Medical Insurance and HSAs. My company stopped providing the "standard" medical policy to new employees about 5 years ago and I had the opportunity to be grandfathered into that plan. The "standard" plan has a $5,250 per person/$10,500 per family maximum out of pocket (MOOP) before 100% kicks in, the high deductible plans are at least twice that. I think HSAs would be great if you have to get a high deductible plan I just don't know how a person could fund it if they have a medically bad year. I've hit my MOOP twice in about 5 years, I feel lucky it was only $5,250 vs $10,000. Medicare is going to seem like a bargain! 😀

[@juliemalekhedayat5910]

Rental income is often tax-free because of depreciation, especially if there is a mortgage on the property.

[@GabrielSBarbaraS]

Caution, when you go to sell the property, you may be faced with a big tax bill. ( Been there, done that ) Consult with a professional.

[@ShamileII]

What Gabriel says is true. I sold a property and got a whopping 22k tax bill. I even asked my accountant to redo the calculations because I didn't believe it. Yep, it was true. It's like all the depreciation you take has to be paid back once you sell.

[@deborahcaldwell9775]

Thanks

[@cameroncunningham204]

I must be a super ultra saver I’ve hated maxed out my contributions to my 401-k, maxed my contributions to my IRA, and now shifting excess $ over to a brokerage account So this video is really helpful

[@cutehumor]

I was doing a brokerage but now I'm doing 100% roth ira and 100% roth 401k maxing both out. I figure with brokerage I'll be paying taxes every year on it.

[@cameroncunningham204]

@@cutehumor When you sale yes, but my brokerage account is primarily my Long term care costs and won’t be used for normal retirement expenses

[@CD-ql9hz]

In regard to life insurance, the first in/first out FIFO tax treatment, could allow the policy owner to withdraw their premiums tax free to supplement retirement income.

[@sherriroemer3144]

If you are working and your employer matches any percent of your contribution to a Roth 401 k, you do not pay taxes on the portion that YOU put in, but you will be liable for the taxes applied to the matched funds your employer contributes. So there will still be taxes to pay if so.

[@kw7292]

Regarding Roth, I always thought my taxes would be less in retirement versus while I was working above the 30%. Now retired I am paying little to no tax, would have been a loser for us to pay 30% vs 10/12% on distributions

[@scoutandscooter]

Once again, great information. This is what I tell my friends. I reference your links. We are all in our 60s, but no one listens to us. One couple brags they have $90k in their 401ks. Another $300k. Good gosh. I guess we should start adding on bedrooms for them.

[@johnking6504]

Do you know of any fiduciary financial advisors in New Hampshire or can you help me ? Are you taking any new clients? Huge fan of yours ...

[@AlphaMale_1]

All of the "tax free" numbers are way out of date, from the 1970's. The IRS needs to update them to the intended amounts for the 2020s or 2030!

[@user-zc8qj2xx1o]

Thank you for all your videos. 13) Reverse Mortgage?

[@headlibrarian1996]

Not technically income. Debt proceeds are not taxable, which is why its repayment is not tax deductible.

[@SuperThinwhistle]

Re: tax free capital gains, does this mean if your net income BEFORE capital gains is $94k you pay no cap gains on any investment income...or does the $94k net income figure also include your cap gain total? In other words, is $50k other net income PLUS $200k cap gains income free of ANY cap gains tax, (because net non-gap gains income is under $94k) or is all the cap gains that bring your total overall income over $94 subject to cap gains?

[@benqurayza7872]

If you have L-T disability insurance subsidized by your employer, do you lose that benefit when you leave the company?

[@dougb8207]

Thanks for this! I'm trying to figure out how my taxes will apply from investing and also trading options, in all three types of accounts ... Roth IRA, Deferred IRA, and out-of-pocket (already taxed) brokerage accounts. Hopefully end-of-year I'll have a better picture.

[@marilynolson8599]

Hello, My portfolio is diverse however not insured by FDIC should I be concerned?

[@KathyJvanest]

Most rich people stay rich by spending like the poor and investing without stopping then most poor people stay poor by spending like the rich yet not investing like the rich but impressing them

[@Juanw5ayne]

People prefer to spend money on liabilities, Rather than investing in assets and be very profitable

[@MarieRandy438]

You are so correct! Save, invest and spend for necessities and a few small luxuries relatives to one's total assets ratio

[@liamcarpss]

Thank you Angela Christine Derle for $60,000👍🏻. There are so many opportunities to make money here on KZbin but most people don’t know. Thank you for continuing updates I'm favoured, $60,000 every two weeks ! I can now give back to the locals in my community and also support God's work and the church. God bless America

[@StaffSpecial]

Hello how do you make such monthly ?? I'm a born Christian and sometimes I feel so down 🤦 of myself because of low finance but I still believe in God.

[@liamcarpss]

Thanks to my co-worker (Alex) who suggested Her

[@fredmorich3573]

How old do you have to be to not pay on the capital gains and dividends .If I retire at 62 am I eligible?

[@user-rv8lg5oc6w]

I believe you don't pay taxes on Injuries received in a car accident or any kind insurance payout where you are injured because of negligence on the person or company who caused such an accident

[@whatsup3270]

This is exactly what is wrong with America, living your life choices by TAX Law not personal choice.

[@wildfoodietours]

Tax free + tax avoidance = loads more in retirement

[@lifewithmargot]

You didn’t mention life insurance and annuities

[@HolySchmidt]

Mentioned both :)

[@lifewithmargot]

@@HolySchmidt oh no 🙈 my bad must have been distracted when you were talking about them my apologies!!!

[@mr88cet]

4:40 - To get the full $500K capital-gains exemption, do you both have to jointly own the home, or do you just have to be married?-

[@-vv3rv]

I know nothing about trading /investment and I'm keen on getting started. What are some strategies to get started with?

[@Jamiewhite663]

Yeah that's right I think it's right to invest with professional at least it saves the trauma of too much loses

[@Jamiewhite663]

I was guided by Nancy Williams Laplace strategy

[@ReedMyresDavid]

This is correct, Nancy's strategy has normalized winning trades for me also and it’s a huge milestone for me looking back to how it all started..

[@user-fe9nv9lw9f]

The first step to successful investment is figuring your goals and risk tolerance either on your own or with the help of a financial professional but it's very advisable you make use of professional

[@-vv3rv]

Please how can I reach out to her easily?

[@Dave_Lucas]

There's no way that "Geoff" is just one syllable. And, can you squeeze any more consonants into your last name? Leave it to an accountant to capitalize on the alphabet.

[@heidikamrath1951]

😂

[@travis1240]

#12 isn't really "income" any more than taking money out of your wallet is income

[@angieharris8015]

I hate when people don't mention FSA's for those people who do not want an HSA (because they may like their insurance). Whether YOU like or not, FSA's are a great tax-savings vehicle. 'But...but ..it's a use-it-or-lose it product!" AND? so then USE IT! There are TONS of things it can be used for, so if people are "losing it" it is because they are nothing more than lazy, unorganized morons! Period!

[@IndianOutlaw1870]

The USD's purchasing power is being obliterated. Why are you still pushing Dollar-denominated assets??

[@franktartan6808]

I very much hope you will address the upcoming election and what could happen in another trump presidency. I am scared schitless! Of course these is no source of unbiased assessment of what will or could actually happen. It feels like it will be the end of our country. I need to make some serious decisions that will effect the rest of my life! Help!