Tax Planning for Widowed Retirees: How to Optimize Your Tax Strategy

Jennifer, 54, plans to retire soon. Her husband, 70, is retired, on Social Security, and dealing with some severe health issues. Jennifer worries about possibly becoming single in retirement, which could result in a higher tax bracket for her. Jennifer is considering whether to convert her traditional accounts to Roth to lower future taxes or to change her contributions to Roth 403b, even if it means paying more taxes now. James walks us through several factors for her to consider and demonstrates why her future tax situation is likely not as dire as she thinks. Questions Answered: How should Jennifer maximize her retirement savings in light of her current financial situation and future tax implications? What factors must Jennifer consider when deciding whether to convert her traditional retirement accounts to Roth or change her contributions to Roth 403b? Timestamps: 0:00 - Jennifer’s question 4:46 - Retire early for tax benefits? 6:05 - Roth conversion strategy 8:43 - Consider future expenses 12:38 - Assess SS strategies 13:56 - Consider living situation 15:54 - The conversion question 17:54 - Main takeaways Create Your Custom Strategy ⬇️ Get Started Here. Join the new Root Collective HERE!