Sub Headline: Pay Some Taxes Today to Create Tax Free Income Tomorrow Synopsis: Transitioning from taxable retirement plans to tax-free income is an economic art form. Few advisers understand the impact of taxes and how to mitigate them. But slowly converting taxable retirement plans to tax free monies before retirement can free up more spendable income. Watch the interview with retirement consultant Jamie Hibbard. Content: Most people in or near retirement don’t have a clue regarding their effective tax bracket and what “head room” remains for tax conversion strategies without “bracket bumping.” Headroom is the annual amount available to convert qualified plans monies to tax free monies. The goal is not to convert an amount that would bump the taxpayer into a higher tax bracket. Ideally, people should consider qualified plan conversion right after age 59½ and continue the conversion process up to age 70½. The goal is to pay taxes before retirement and fund Roth IRAs and Cash Value Life Insurance. Both have the potential to generate tax-free income that will not be includable in the provisional income test for Social Security Benefits. The taxes on any unconverted qualified plan monies at age 70½ can be mitigated by using   Read more…