How To Pay $0 Tax On A Big Retirement Income

Here's how one couple paid $0 tax on their retirement income.
Dave Zoller, CFP®
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[@BigNate82]

Financial planning is like navigation. If you know where you are and where you want to go, navigation isn't such a great problem. It's when you don't know the two points that it's difficult

[@dianebrouwer4389]

Yes, more scenarios! Seeing examples helps me understand the effects of making certain financial moves. Do some examples for single people, please!

[@josehenry7205]

I'm so happy I made productive decisions about my finances that changed my life forever,hoping to retire next year.. Investment should always be on any creative man's heart for success in life

[@EatLeadPal]

I love example videos and this was a good one. I would like to see some examples for single people, maybe 1 out of 3 or 4, depending on the ratio of married to single retirees.

[@stevezoller1384]

This is really good, Dave. I wish people would do more planning like this. What they need to do …is a tax projection in November or early December. They could save a ton of tax $$ due to zero cap. gain tax at certain income levels. People are usually too busy(??) to plan

[@EricBivens-g1g]

These are exactly the kinds of scenarios I want to learn about as I am heading into retirement. Thank you so much for all the work you put into this.

[@cliffluxion7019]

Thank you. 😃 Never be zero income tax people here, I don't think, but it's a good example of what to work toward, opportunity permitting. 🤔

[@eagleschic4926]

Thank you for this little ditty about J &D.

[@cathleenwoodul8836]

Little ditty 'bout Jack and Diane Two American kids growin' up in the heartland

[@lindapaquette2951]

This discussion is so important. I find your videos so helpful. It’s so important to have this knowledge to make better financial decisions of where to withdraw money from in our portfolio to keep our taxes low.

[@markb8515]

Thanks Dave, the video is very helpful and I would like to see more case studies like this. I have a simular situation but I'm single and concerned about RMD's in 12 years.

[@CarolCattle]

More please. Thank you, very helpful.

[@amerlin388]

I can see where you might want to take a year (or two) keeping taxable income low, harvesting tax gains if you are fortunate enough to have a significant amount (you don't have past losses carried over that you must use to offset)... However, in general, you shouldn't have a goal of paying $0 taxes in retirement. Take the hit filling the 10% and 12% tax brackets (at least), otherwise you're passing along the tax burden to your heirs who will likely pay 25% or more in taxes.

[@LarryLlodra]

I love scenarios! Please keep them coming. They help to transform theory into reality.

[@JG-DivMan]

Nicely done! No fluff, informative, and right to the point. I honestly wasn't aware of tax gain harvesting. I've been harvesting losses regularly over the years, but haven't (yet) been in a situation where gain harvesting would be helpful. However, it's good to know for the (hopefully sooner than later) future. I've always been interested in the role of home equity in retirement scenarios. Would love to see a future video on various strategies around how to handle one (or more) real estate investments in retirement.

[@davidelliott400]

Good for those who can use it. Good coverage of the topic. Yes, more samples.

[@jpnietzel3565]

Love the scenario. You make it easy to understand and I see other option then Roth conversions.

[@miekowu5139]

Yes, very helpful to see the scenarios. Thank you.

[@manologal415]

Great video! The real-life scenarios are very helpful. You are clear and concise. Thank you.

[@reneejj160]

Yes loved that example. Thank you!!!

[@iLibertynextchapter]

Please make more of this type of video content. i am running to my advisor about this. Can you also make content for single people with a teenager dependent? Thank you very much.

[@williammerrill5506]

Thanks for taking the time to inform us on how to make better decisions!

[@GiovanniVenetico]

I deeply appreciate the information. What I would love is how to actually implement these strategies.

[@charlielauters3107]

I like these kinds of videos. Thanks for doing them!

[@colleenconger5265]

You ROCK Dave! Thank you for sharing all your valuable knowledge 🙏❤

[@gayleneflower398]

Very helpful. I just cashed out my Roth and now I’m going to be taxed. I wish I would’ve known sooner.

[@bettyjalpa7858]

Please do more videos like this!

[@gizmobowen]

I'd heard of tax loss harvesting and seen it explained. I'd heard of tax gain harvesting, but wasn't sure how it was implemented. This was helpful, thanks.

[@brad-u8k]

Great video. Seeing examples is better and more relatable than hearing theory. I came to watch this video, now subscribed.

[@margie6534]

Yes! Very much appreciate this topic.

[@JoeTaxpayer]

Is that little tax app available online? It would be great if your followers can tinker around with it on their own for their personal situation.

[@tbattist-yc8rj]

Very informative. Thank you. How does one invest/plan Qualified dividends. Do funds or companies provide this forward looking info? I see this showing on 1099s but not aware of a means to manage it.

[@stephtraveler7378]

Yes, love the scenarios. What I see as the fundamental in this scenario is they stayed under the LTCG waterfall tax threshold. I actually did Roth conversions in prior years to be able to accomplish the same (0% LTCG taxes) in my retirement years. (Also qualifing for other benefits like avoiding IRMAA and ACA supplements prior to age 65). Would also like to see drawdown scenarios from qualified and non qualified investments.

[@swim31swim]

Hi, Yes please show more of these scenarios. Thanks

[@Bokescreek]

Like others, I really like the scenarios--a good teaching tool.

[@davidboragine2067]

More please,,, more people need to see this.

[@richlandzee8686]

Can you do a case study of a single person and a couple aged 54 with $1.5M in current assets in 401k or IRA? They plan on early retirement in 6 years and currently maxing out ROTH 401k in the 24% marginal tax bracket. Everyone kept saying do ROTH conversion while working but how is that an advantage compared to traditional 401k? Assuming $10k/month Pretax withdrawal between 60-67 before SS kicks in.

[@jamesbyrnes9138]

Would love to see one that adds the military retirement variable. All else in this video being similar…great content…thanks.

[@mikeinmilltownnj1267]

Do one on RMDS how long will money last on IRS rules age start age 73. Three types market below avg. avg. and above avg. Thanks

[@ninajohnson6578]

Yes this is helpful. Thank you

[@dannypurcell2392]

Yes love these types of videos with specific examples

[@gec1030]

Another great video. Greatly appreciate the use of examples as a means of explaining.

[@mark72164]

Yes! Scenarios comparing and contrasting bring these topics into focus and I can understand the how and why.

[@michaelsadik30]

Great example that is very relevant to my situation. Thank you for the clear explanation.

[@benitaaston6732]

Vvaluable content! Thanks

[@skyak4493]

This is just what I need. I retired early and have been haphazard with making the turn from loss harvesting to gain harvesting. Part of the reason is that I always figured that the government healthcare subsidy from low income beat that tax savings when I am on medicare. Now I am not sure.

[@christopherprice3226]

Dave Amy and I dig this. Do more like this please.

[@jaymetheaccountant]

Great content Dave - keep it coming!

[@travel_roam_fun_music]

Scenarios are great! Nothing like real world examples. One question. Although you pay taxes on the roth conversion, if you are not going to immediately spend the money, roth can be reinvested and make up the taxes paid and never pay tax no matter how much you withdraw? If you reinvest the taxable, as long at your below that tax cap you are also good? Do I understand that properly?

[@stevemlejnek7073]

Thanks Dave. I like this kind of scenario/software demonstration video. Keep 'em coming!

[@dayooch]

Are you able to share what software you're using to calculate this info?

[@AliciaCrone]

The key to successful retirement lies in a well defined strategy and execution. Whether you're a day trader or a swing trader, having a plan that includes risk management and exit criteria is crucial.

[@WJ770]

Thank you so much! Very helpful. Like more videos for details of calculation and plans.

[@whitleyca]

Scenarios are immensely helpful! Keep em coming

[@susanHOLDER-jn5fg]

Yes! Yes! Deeply beneficial!!

[@TrendyStone]

Yes, good helpful example.

[@Erginartesia]

Good video! Perhaps you will do some 2024 vs 2026 (TCJA Sunsets) comparisons.

[@Sharon-wz6xd]

Very helpful, thank you! Would love to see more scenarios.

[@paulr8439]

The long and short is they are not paying taxes on long-term capital gains. Why is that? I'm sure it's "in the numbers" but can you explain in a sentence or two?

[@Bondbeer]

On $175k of income this year, we will pay less than $8k in tax. We have one income of $40k from which we max out 401k of $30,500 plus another $8,000 in a spousal IRA. We take the standard deduction of $29k and HSA of $10,300 along with $3k of stock losses bringing taxable income to $94k of which $30k are qualified dividends in the zero percent bracket.

[@baseball6749]

Isn’t standard deduction 29,200 where do you get 32,400 from. Helpful video though. Thanks.

[@DP52001]

Great video and content - thank you for all you do for the community!

[@briangrumieaux9714]

Yes very helpful!

[@gchow6009]

Very helpful. More scenarios

[@wallihaley5194]

This was very helpful.

[@Mattshank-uo6jl]

Very interesting! Did not know that you could pay zero tax on long term cap gains up to a certain threashold. Always thought it was taxable at 20% regardless.

[@glockman99]

Definitely love these kind of videos

[@WildBlueDiscovery]

Good Job Dave!

[@tlar1272]

I would like more content like this if it was simplified further. Especially not switching between 2 different pages. So can you explain it to me like I am 5 years old instead of a tax accountant?

[@jazzjokesjalopies]

Extremely useful. Thanks!😊

[@kimmie869]

Can you do a scenario with a married couple in which both have a pension?

[@clbcl5]

Is there a free version of the tax planning software for an individual?

[@GrowingUpUp]

Cool! What is the website that lets you play around with? Could you please share it?

[@pepster60]

Love this type of video!!

[@dwhite6213]

Why are RMD's not shown?

[@beb10]

Great video. For this example, I love that they can be pay $0 taxes after taking $29K in LT Capital Gains. My question is could they also additionally do ANY Roth conversions to still stay within the $0 taxes owed? If so, what would be the max they could do before owing any taxes?

[@allenhalstead7153]

Yes, most helpful, thanks

[@Mary-tj5qx]

great stuff, keep it coming.

[@kinggeek1960]

add more examples for high income earners 32% and above brackets

[@johnroberts3775]

Hi Dave, any chance you're taking on new clients?

[@paulseto6506]

Hello: Can you use this technique in Canada? Thank you.

[@clbcl5]

Thinking about Billy Joel?

[@claytonappleby6039]

Yes. More

[@richdewitt760]

Yes more Scenerios

[@dancurran8977]

Thanks it was helpful. All of our money is in pretax IRA, Roth, and cash. This year we are going light on Roth conversions to maintain a decent ACA subsidy. Next year my wife and I are both on Medicare so it will be pedal to the metal until we start taking Social Security at 70.

[@joemunch58]

What kind of trust is it?

[@josephjuno9555]

Yes something new not same Roth Conv

[@johngarceau541]

Helpful

[@gabrielehalloran5771]

State income taxes could still make you pay.

[@fincarosa]

Oh look its Jack and Diane. Two American kids doing the best they can #johnmellancamp

[@alisonsmith5466]

Examples involving single individuals

[@EamonnHogan-eu3qc]

If a person has a child with a non resident, which means not a USA citizen, therefore does not have a social security #, can that filer claim that spouse as a dependent?? If the child is a dual citizen, and is an American citizen with a social security #, I'm assuming that single filer can now become head of household and claim his child as a dependent, is that correct??

[@dnk4559]

This is very helpful. Thank you!

[@briankennedy3126]

Helpful