Sep 2, 2021 · The Tax Triangle is a foundational concept in creating a tax-efficient retirement plan. The Tax Triangle directs you to where to save and invest to maximize your after-tax wealth. In its simplest form, the Tax Triangle is tax diversification.

Tax diversification, also known as the tax triangle*, is a strategy that can help you better position your accounts to fund your retirement. Use the chart below to see where your investments fall.

Other international tax presentations often use a triangle within a rectangle to represent a partnership and an oval within a rectangle to represent a disregarded entity. Our charts do not use two different shapes for these two types of entities.

This free guide will show you how to balance all three types of accounts (taxable, tax-deferred, and tax-free) to give you the flexibility you need to retire early, minimize Uncle Sam’s take, and enjoy life on your terms.

TAX CONTROL TRIANGLE While you're saving Roth IRA/401k Muni Bonds Downsides: (some Life Insurance) Roth limits/withdrawal rules Muni income may affect SS Life insurance fees, penalties Tax Free When you withdraw funds While …

Consider three general types of accounts, as represented by the tax triangle below,* that are based on the type of contribution source (after-tax or tax-deductible) as well as the taxation of growth (taxable, tax-deferred, or tax-advantaged). Make after-tax contributions to savings and generally pay no taxes on growth or withdrawals.

This exercise will tell you whether you should choose a tax free account like a Roth IRA over a 401k plan or Traditional IRA. It’ll also show you visually if you don’t have enough flexible money. Tax savings are great, but you want to balance your three sides of the triangle.

Tax Triangle. There are three pools that you can save assets into towards retirement. Up here, you have the tax-free pool, down here in the bottom left, you have the taxable pool, and over here in the bottom right, you have the tax deferred pool.

Jun 4, 2021 · How much you should be saving to what account depends on your specific situation and is something we can help you plan for today. The tax triangle gives you additional options and flexibility when it comes to tax and financial planning.

Sep 18, 2019 · The chart below shows marginal tax rates for individuals and couples making $100,000 over that last 50 years and their corresponding tax rates. After looking at the chart, is it unrealistic to think rates could move dramatically higher over the next 50 years?