Experienced in first position commercial mortgages, Barry Kornfeld leads First Financial Tax Group. With diverse financial experience and acumen, the company’s co-founder, Barry Kornfeld helps individuals establish conservative income strategies to sustain their retirement.
With the guidance of a tax professional, individuals can take the following steps toward reducing income tax during retirement:
Keep income low to avoid social security tax.
At the age of 62, you gain access to social security benefits. Depending on your combined income, which takes into account adjusted gross income, nontaxable interest, and half of your social security benefits, you may be required to pay social security benefit taxes. For couples filing jointly, income must remain below $32,000 to qualify for exemption.
Stay under the 15 percent tax bracket.
In 2015, the 15 percent tax bracket for single filers ranges from $9,225 to $37,450. Married people filing jointly make between $18,450 and $74,900. If you are in or below the 15 percent tax bracket, you may qualify for tax breaks, such as the earned income tax credit, which refunds a portion of taxes to people with low to moderate incomes. In addition, income earned from dividends will not be taxed.
Choose a Roth IRA over a traditional IRA.
A traditional individual retirement account (IRA) helps you save money for retirement without taxing deposits. However, upon withdrawal during retirement, you will be assessed taxes at the present rate. Conversely, a Roth IRA accrues pre-taxed dollars, so you will not have to pay taxes when you make a qualified withdrawal. To qualify, you must be more than 59-and-a-half years of age and have made contributions for more than five years prior.
Possessing three decades of experience in retirement planning, Barry Kornfeld is the co-founder of First Financial Tax Group. Through his firm, Barry Kornfeld focuses on tax planning and income optimization to maximize clients’ wealth.
Plan a retirement that limits tax implications by opening a Roth individual retirement account (IRA) and downsizing your home. A Roth IRA allows you to save a sum of money that has already been taxed. Available through numerous financial institutions, the account gives you the option to withdraw funds at the age of 59 and a half without paying additional taxes. If you decide to access the funds earlier, be aware that a 10 percent penalty may apply.
During retirement, you may discover that the size of your home exceeds your needs. Downsizing is a reasonable solution to reduce costs associated with maintenance. Furthermore, if your mortgage is paid in full, selling can increase wealth with little to no tax. Use the money to supplement your retirement income or invest it for future gains. It is best to discuss this option with a tax professional to ensure you comply with Internal Revenue Service regulations.
A long-time income tax and estate-planning professional, Barry Kornfeld oversees First Financial Tax Group, a Boca Raton, Florida-based firm he cofounded. In his free time, Barry Kornfeld enjoys travelling, biking, and watching the Miami Heat basketball team.
In a recent press release, the Miami Heat organization announced that it has launched a partnership with Tissot, the legendary Swiss watchmaker and official timekeeper of the National Basketball Association. The partnership will include a marketing campaign to engage Heat fans and will bring Tissot shot clocks into AmericanAirlines Arena by the 2016-2017 season.
For its part, Tissot will release a special-edition Miami Heat watch that will offer a chronograph function and feature the Heat colors and logo. Miami Heat Executive Vice President John Vidalin and Tissot President Francois Thiébaud recently met in New York to announce the partnership and unveil the Miami Heat watch, which fans can soon purchase in Tissot brick-and-mortar stores and on its website for $450.
Florida-based financial services professional Barry Kornfeld provides tax advisory and income-planning services for retirees as the owner of First Financial Tax Group in Boca Raton. Outside of work, Barry Kornfeld enjoys playing and coaching basketball and cheering on his favorite NBA team, the Miami Heat.
In a recently released statement, the Miami Heat announced that they have signed 6-foot-11, 230-pound center Keith Benson. Benson was picked up by the Atlanta Hawks in the second round of the 2011 NBA Draft, but he has only played three NBA games.
After a stint in the NBA Development League, the 27-year-old spent the last two seasons playing for international teams in China, Belarus, Lithuania, and Estonia. Last year, Benson posted decent numbers in 47 games split between Neptunas Klaipeda in the Lithuanian Basketball League and BC Kalev/Cramo Tallinn in the Estonian Basketball League.
In addition to his overseas play, Benson spent this summer playing for the Orlando Magic in the NBA Summer League, where he averaged 12.8 points, 6.2 rebounds, and 2.40 blocks in five games. Benson is the 16th player on the Heat’s roster and will reportedly spend the 2015-16 season with the team’s D-League affiliate, the Sioux Fall Skyforce.