Retirement planning often revolves around accumulating assets — maximizing savings optimizing investment returns and aiming for a comfortable lifestyle in later years But too often one critical element is sidelined in this process tax strategy Ignoring the tax consequences of retirement decisions can quietly erode wealth while integrating smart tax planning can substantially enhance long-term…, The overlooked power of tax planning, For most individuals taxes are a burden they hope to minimize Yet effective wealth management doesn’t just reduce taxes — it strategically aligns them with a client’s financial goals  As financial planners one of the most common pitfalls we see is decision-making that either ignores taxes altogether or is overly influenced by them For example investors may avoid selling a profitable holding…, IRA vs Roth IRA A strategic contrast, Understanding the difference between traditional and Roth retirement accounts is fundamental to long-term tax efficiency, Traditional IRA/401(k, Contributions are made with pre-tax dollars reducing taxable income now Funds grow tax-deferred but taxes are due at withdrawal, Roth IRA/401(k, Contributions are made with after-tax dollars The growth and withdrawals are tax-free — and there are no required minimum distributions (RMDs Each account type has distinct advantages Traditional accounts offer short-term tax relief Roth accounts offer long-term tax freedom The key is knowing when and how much to contribute to each, The Roth opportunity, Roth IRAs and Roth 401(ks can be particularly valuable when used at the right time If you expect your tax bracket to be higher in retirement — or if you value the flexibility of tax-free withdrawals — Roth contributions can provide significant benefits But its rarely an all-or-nothing decision In many cases dividing contributions between traditional and Roth accounts allows for flexibility…, Roth conversions A calculated strategy not a rule of thumb, The Roth conversion — moving funds from a traditional IRA to a Roth IRA — is one of the most powerful tax planning tools available But it’s not for everyone and it’s certainly not a blanket solution The most effective time for a Roth conversion is typically after retirement but before RMDs and Social Security benefits begin — often a period of lower taxable income However converting funds…, Pay taxes with non-IRA funds, Using outside assets to pay the tax bill maximizes the converted amount and its potential for tax-free growth, Evaluate annual thresholds, Spreading conversions over multiple years can avoid bracket creep and help manage Medicare-related income limits, Model scenarios, Every investor situation is different At Mesirow we use scenario modeling to analyze the cost-benefit equation and determine the right level and timing of conversion, Looking ahead The policy landscape, The US national debt currently over $36 trillion raises questions about the long-term sustainability of current tax rates While it has long been assumed that individuals pay lower taxes in retirement that assumption may not hold true for future generations The likelihood of rising tax rates reinforces the need for tax-diversified retirement savings Moreover Roth accounts offer advantages beyond…, Final thoughts, Integrating tax strategy into retirement planning is not a luxury — it’s a necessity Roth IRAs traditional IRAs and Roth conversions are tools not solutions in themselves Their value lies in how they are applied strategically with a long-term perspective tailored to each individual’s situation At Mesirow our approach to planning goes beyond asset allocation We guide clients through a dynamic ever…

Most investors understand the significant tax benefits of using their qualified retirement accounts — such as their 401(ks IRAs and Roth IRAs — to build long-term wealth But did you know that these types of accounts also provide creditor protection, One of the lesser-known benefits of retirement accounts is this — Federal statues offer retirement accounts special treatment when subject to the claims of creditors This creditor protection can be a valuable tool in the event of a legal liability personal injury lawsuit or bankruptcy Accounts that receive special protection include 401(k plans pension plans profit sharing accounts SEP IRAs…, Type of Account, Bankruptcy protection, Legal liability protection, 401(ks, Unlimited protection 1 Unlimited protection 1, Pension plans, Unlimited protection 1 Unlimited protection 1, Profit sharing accounts, Unlimited protection 1 Unlimited protection 1, SEP IRAs, Unlimited protection 2 Regulated by state, SIMPLE IRAs, Unlimited protection 2 Regulated by state, 403(b plans, Unlimited protection 1 Unlimited protection 1, 457 plans, Unlimited protection 1 Unlimited protection 1, Traditional IRAs, Aggregate protection up to $1512350 (2022 2 Regulated by state, Roth IRAs, Aggregate protection up to $1512350 (2022 2 Regulated by state 1 Based on ERISA guidelines | 2 Based on BAPCPA guidelines, Account withdrawal protection from creditors, Furthermore withdrawals from an ERISA retirement plan can retain an enhanced level of creditor protection depending on the destination of the withdrawal Funds deposited to another employer’s ERISA plan maintain unlimited protection for both bankruptcy and legal liability Funds deposited to an IRA account consisting solely of rollover funds maintain unlimited protection for bankruptcy but not for…, Published January 2025, 1 Employee Retirement Income Security Act of 1974 (ERISA 2 Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 3  https//wwwthebankruptcysiteorg/exemptions/federalhtml

Ricardo Jones is a Vice President Client Relationship Specialist in Mesirow Wealth Management He is responsible for day-to-day client service and communications including client portfolio management trade requests account processing and documentations Ricardo has 18 years of experience in financial services insurance and banking with a focus on working directly with clients Prior to joining…