High earners often have everything in tax-deferred accounts. Spreading savings across tax treatments gives you control later.
Many high-income professionals save diligently in workplace plans — and arrive at retirement with nearly every dollar still waiting to be taxed.
Three buckets
Taxable, tax-deferred and tax-free accounts each behave differently when you withdraw. Having money in all three lets you choose how much taxable income to show each year.
Control in retirement
With balance across buckets, you can manage your bracket, the taxation of Social Security and Medicare premiums, rather than letting required withdrawals decide for you.
Work with your CPA
Tax strategy works best when your planner and your CPA coordinate. Our roundtable approach brings both to the same table.
This article is for educational purposes only and is not tax, legal or investment advice. Speak with a licensed professional about your own situation.
