A client needed to replace his roof and had collected several quotes. Initially, he planned to withdraw $25,000 from his Traditional IRA to cover the cost but decided to consult with us before proceeding.
How We Helped:
- Current Tax Review: We began by analyzing his current tax situation to understand the potential implications of an IRA withdrawal.
- Exploring Funding Options: We ran comparisons to evaluate the best funding options, considering his income sources and tax implications.
- Offering Viable Solutions: We identified three practical solutions and walked him through each one, allowing him to ask questions and select the option that minimized unnecessary tax liabilities.
Why Strategic Tax Planning Matters
Through careful tax planning, we helped him make a confident financial decision that saved money and reduced tax burdens, ensuring he could cover the roof replacement without disrupting his overall financial strategy.
Complicating Factors: Part-time employment, Social Security income, clergy income, and housing allowance considerations.