CPA Discloses: 12 Sources of TAX FREE Retirement Income

This video discusses 12 sources of tax free retirement income. The video starts off with more conventional sources of tax free retirement income such as a Roth IRA and municipal bond income, and moves toward more unique income streams as the video progresses.

Importantly, 50%+ of the sources of tax free income most retirees have access to when they leave the workforce.

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Disclaimer: this video is for educational and entertainment purposes only and is not meant to be a substitute for legal, accounting, tax, or professional advice. If you have any specific questions about any legal, accounting, tax or other professional service matter you should consult the appropriate professional services provider.

[farmerjones]

1) Roth IRA
2) Municipal Bonds
3) Home sale
4) Life insurance
5) Long term disability
6) Long term capital gains
7) Health Savings Account
8) child support or alimony
9) Inheritance
10) Gifts
11) Federal Disaster Relief
12) Investment Basis (aftertax $)

[stingray]

I recently have retired and your videos have given me a lot of help in asking questions and knowing how to look for certain things etc. I never withdrew from my HSA and now I have 20k for when I need it.
Thank you sir!

[GabrielSBarbaraS]

Let me add another indirect income source which is the power I produce from my paid off 15 yo roof solar system. the power I receive from the sun is not taxed, does not have any fees and the power company in NC ( at least for now ) pays me retail price for any excess we produce ( again I don't need to claim that as income either ) Think about this if you are about 55 yo and want some tax free indirect income when you retire. 😎😎😎😎😎

[sledboy]

At the end of the discussion on gifts which starts at about the 11:12 mark, a comment is made at 11:32 saying that when someone receives more than $18, 000 (as a gift in 2024), that amount in excess of $18, 000 becomes taxable. I don't think this is generally correct, at least regarding federal income tax for the gift recipient. IRS Pub 525 says on p34 under Gifts and Inheritances: "In most cases, property you receive as a gift, bequest, or inheritance isn't included in your income." Am I missing something?

[jimmyamico]

Hi Geoff,
Very helpful and informative video as always … you’re the best thank you for all the hard work that you do. It’s appreciated more than you will ever ever know.❤

[keithmachado-ppfv]

Great video as always. I was surprised you said the amount of gift over $18k was taxable to the recipient. My understanding was that you could give up to the estate tax exemption as long as the proper tax form was filled out and there would be no tax. I read elsewhere that was one planning item to gift now while the higher exemption is in place as the IRS had indicated there would not be a “clawback” once the limit is reduced in 2026. Can you clarify?

[juliemalekhedayat]

Rental income is often tax-free because of depreciation, especially if there is a mortgage on the property.

[cameroncunningham]

I must be a super ultra saver

I’ve hated maxed out my contributions to my 401-k, maxed my contributions to my IRA, and now shifting excess $ over to a brokerage account

So this video is really helpful

[OurRetireEarlyJourney]

Great stuff! Love the information around capital gains and dividends

[vinnyg]

Interesting figure that was used for High Deductible Medical Insurance and HSAs. My company stopped providing the "standard" medical policy to new employees about 5 years ago and I had the opportunity to be grandfathered into that plan. The "standard" plan has a $5, 250 per person/$10, 500 per family maximum out of pocket (MOOP) before 100% kicks in, the high deductible plans are at least twice that. I think HSAs would be great if you have to get a high deductible plan I just don't know how a person could fund it if they have a medically bad year. I've hit my MOOP twice in about 5 years, I feel lucky it was only $5, 250 vs $10, 000. Medicare is going to seem like a bargain! 😀

[walterlee]

Holy Schmidt! Very useful and important info ! THANKS A LOT !

[sherriroemer]

If you are working and your employer matches any percent of your contribution to a Roth 401 k, you do not pay taxes on the portion that YOU put in, but you will be liable for the taxes applied to the matched funds your employer contributes. So there will still be taxes to pay if so.

[CD-qlhz]

In regard to life insurance, the first in/first out FIFO tax treatment, could allow the policy owner to withdraw their premiums tax free to supplement retirement income.

[KathyJvanest]

Most rich people stay rich by spending like the poor and investing without stopping then most poor people stay poor by spending like the rich yet not investing like the rich but impressing them

[AlphaMale_]

All of the "tax free" numbers are way out of date, from the 1970's. The IRS needs to update them to the intended amounts for the 2020s or 2030!

[whatsup]

This is exactly what is wrong with America, living your life choices by TAX Law not personal choice.

[kw]

Regarding Roth, I always thought my taxes would be less in retirement versus while I was working above the 30%. Now retired I am paying little to no tax, would have been a loser for us to pay 30% vs 10/12% on distributions

[-vvrv]

I know nothing about trading /investment and I'm keen on getting started. What are some strategies to get started with?

[johnking]

Do you know of any fiduciary financial advisors in New Hampshire or can you help me ? Are you taking any new clients? Huge fan of yours ...

[scoutandscooter]

Once again, great information. This is what I tell my friends. I reference your links. We are all in our 60s, but no one listens to us. One couple brags they have $90k in their 401ks. Another $300k. Good gosh. I guess we should start adding on bedrooms for them.