Retirement Account Tax Preparation,
Without the Stress
Retirement accounts can create tax consequences at every stage, not only after you retire. Contributions may reduce your taxes now or support tax-free growth later, depending on the account and your income. Converting from one account type to another can create a tax bill today in exchange for tax-free withdrawals in the future. At a certain age, required minimum distributions begin, and missing them can lead to penalties. Early withdrawals may also trigger a penalty in addition to income tax. Even transferring an account or inheriting one involves rules that determine whether a large Form 1099-R is taxable. Managed with the full timeline in mind, retirement accounts can be powerful. Managed one form at a time, they can create costly mistakes.
Our office is at 12305 Gold Street in West Omaha. Clients with retirement accounts often choose us because they know the fee before work begins and work directly with one credentialed professional from start to finish, rather than a seasonal tax preparer. Your return is prepared by a CFP® professional, CFA® charterholder, and Enrolled Agent. We stay responsive throughout the process, including during tax season. When your return is complete, you receive a recorded video explaining each number, what it means, and why it appears on your return. You do not pay until the return is ready to be filed.
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Some Situations That Might Apply to You If You Have a Retirement Account
You are taking Required Minimum Distributions
Once you reach the required age, you must begin taking annual distributions from most traditional retirement accounts, whether you need the money or not. Missing a required minimum distribution can lead to a significant penalty. The amount depends on your account balances and age, and the rules for combining certain accounts are easy to misunderstand. Retirees may also be able to direct part of a distribution to charity, satisfying the requirement without including that amount in taxable income. We calculate the required distribution, help you avoid penalties, and use the charitable option when it benefits you.
You are converting to a Roth
Converting money from a traditional retirement account to a Roth means paying tax now in exchange for tax-free growth and withdrawals later. The key question is whether this is the right year to make the conversion. Lower-income years after retirement and before larger income sources begin can create an opportunity to move money at a lower tax rate and fill a bracket intentionally. A conversion also increases your income for the year, which may affect Medicare premiums two years later, so the amount should be calculated carefully. We run the numbers to determine whether a conversion makes sense rather than relying on a general rule of thumb.
You inherited a retirement account
Inheriting an IRA or 401(k) comes with rules that have changed significantly in recent years and remain widely misunderstood. Most non-spouse beneficiaries must now empty the account within ten years, and some may also need to take taxable annual withdrawals during that period. Surviving spouses generally have more flexible options. Misunderstanding which rules apply can lead to penalties or concentrate too much taxable income in the wrong years. We identify the requirements for your situation and help structure withdrawals to keep the tax impact as manageable as possible.
We also help with related situations, including retirement income, IRS notice help, and HSAs. Or browse every income tax situation we help with.
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