At Johnson Brunetti, we receive numerous compelling questions about retirement planning from our valued listeners and viewers. Today, we’re addressing some of these insightful inquiries with financial advisor Nicholas J. Colantuono, CFP®.

How Do I Make My Money Last in This Market?

Kathy raises a fantastic question, especially in today’s uncertain market. The key to longevity in financial planning lies in maintaining flexibility and control. This means having the ability to access your funds when needed, while managing where those funds are sourced. Despite market fluctuations, these foundational strategies have stood the test of time.

Are Taxes Withheld from 401(k) Withdrawals?

Janice asks whether state and federal taxes are deducted with each 401(k) withdrawal and if they count as yearly total income. The answer is, it’s up to you. Upon making withdrawals, you can choose whether to have taxes withheld. Both state and federal taxes apply, but you can opt to take the gross amount as income. Remember, this might mean a sizable tax payment come tax season, so plan accordingly.

Is a Roth Conversion Wise If I Need Withdrawals Soon?

Mark wonders about the timing of a Roth conversion when he will soon need withdrawals from non-Roth IRA accounts for living expenses. Roth conversions are all about timing. Consider whether your current income is higher or lower compared to what it might be 10 to 15 years from now. With taxes likely to rise, Roth conversions are a crucial element of the strategies we develop.

We’re grateful for these terrific questions on such a variety of retirement topics. At Johnson Brunetti, we’re here to help you navigate the complexities of retirement planning, ensuring you have the flexibility and control you need for your financial future.