Robert and Linda

Challenges and Concerns

- RMDs start next year and could raise their tax bracket
- Withdrawals had no tax plan
- They want to give to church and help with grandchildren's college
- Linda wasn't sure what she'd do on her own

Solutions and Implementation

We might recommend:
- A yearly plan for which account to draw from first
- Partial Roth conversions before RMDs begin
- One to two years of withdrawals held in cash and short-term bonds
- Qualified charitable distributions from Robert's IRA for church giving
- A survivor plan for Linda

Expected Results

Robert and Linda would know what they can spend each year and which accounts it comes from. Linda would have a clear plan if she is ever on her own.

Hypothetical example. Robert and Linda are not real people or Wela clients. This illustration is for educational purposes only, does not reflect the experience of any actual client and is not a testimonial or endorsement. It does not show actual or hypothetical investment performance. Recommendations depend on each person's full financial situation, and there is no guarantee that any strategy will achieve its objectives. Roth conversions are taxable in the year of conversion and cannot be undone. Investing involves risk, including possible loss of principal.

This information is not intended as tax or legal advice. Consult a qualified financial adviser and/or tax professional before implementing any strategy discussed herein.