Tax Strategies How will taxes impact your retirement? The most common retirement portfolios consist of: IRAs There are two types: Traditional and Roth. These are are considered tax-advantaged savings accounts to help you for retirement. They hold stocks, bonds, mutual funds, ETFs, and more. 401(k)s A 401(k) is a retirement savings plan sponsored by an employer. It has an "employee match" feature and taxes aren't paid until the money is withdrawn from the account. Individual Brokerage Accounts A brokerage account is a type of investment account you open with a brokerage firm, and you can use it to buy stocks, bonds, and other investments. SEP IRAs This is another form of an IRA, which also allows business owners to provide retirement benefits for themselves and their employees. Funds can be invested the same way as most other IRAs. Social Security Social security is another tool people take into consideration when creating their retirement portfolio or retirement plan. Pensions A pension plan is a retirement plan that requires an employer to make contributions into a pool of funds set aside for a worker's future benefit, rather than it being employee funded. Real Estate Holdings Real estate investments is another common way to build a retirement portfolio and save for retirement. If this is your portfolio, perhaps a tax-diversified or tax-efficient retirement strategy is right for you. Speak with an advisor Use the tax code to your advantage The retirement accounts above, could be subject to ordinary income tax, and/or capital gains tax.The majority of these retirement assets could subject the retiree to IRS means testing, which could even lead to Social Security being taxed as ordinary income.Please consult a Fitzpatrick advisor about building the ideal portfolio that attempts to use the tax code to your advantage. We strive to retire clients in as close to the zero tax bracket as possible by tax diversifying their portfolio with favorable, tax favored assets and investments. Learn more Find a Financial Advisor Brandon Green, ChFC®, CLU®, CLTC, LUTCF Cameron Cooper David Dobbins Eric Peña Fabian Ledesma Geoffrey Lucado Gregg Pope Jack McIntosh JT Jakubik Katherine Bell Lyndi Price Matthew Fuller Morgan Dean Peter Acquaro*, LUTCF® Phillip Hammett Rhalston Jones Rick Yancy, CPA Ryan Morehead* Shane Rankin Sylvan Schwartz Tehrrek Fitzpatrick Tracy Allen Walter Yates Related content IRA Withdrawals that Escape the 10% Tax Penalty The list of IRA withdrawals that may be taken without incurring a 10% early penalty has grown. Have a Question Name Email Phone Question Thank you! Oops!