It’s smart to plan for multiple sources of retirement income to supplement Social Security. This helps ensure you have a cushion if your retirement expenses change unexpectedly. We’ll work with you to:
Our U.S. Bancorp Investments advisors provide wealth planning, investments and insurance support. U.S. Bank wealth specialists offer trust and estates and wealth management banking services.
Are you saving enough for the retirement you want? Our retirement calculator can help you track your progress. Use it to test a variety of scenarios and see where you stand today.
Retirement income may be drawn from a mix of different income streams. Each can play a specialized part in your overall retirement portfolio strategy.
Annuities from U.S. Bancorp Investments may offer various ways to create income throughout your retirement and provide lifetime payouts to joint beneficiaries.
Contributing to an HSA lets you accumulate tax-sheltered savings that you can use to pay for expenses in retirement.
Cash value provided by life insurance offered from U.S. Bancorp Investments can be a tax-advantaged way to supplement retirement income, and help fund your spouse’s retirement if they survive you.
Consider the financial impact of when you start taking distributions. You can start collecting payments as soon as age 62, but you’ll receive significantly less income overall than you would if you start receiving payments at 70.
Building up your personal savings and investments after you've maxed out your IRA, 401(k) and other tax-advantaged retirement accounts can provide added flexibility for income during retirement.
Contributing to an employer-sponsored plan, such as a 401(k), 403(b) and 457(b), can provide a good source of retirement income. Distributions are taxed as ordinary income and may be subject to penalties if taken prior to age 59-1/2. Similar to traditional IRAs, you'll have to start taking required minimum distributions (RMDs) when you're 73.
Traditional IRAs provide tax-deferred growth, which means any earnings won’t be taxed until you start taking distributions. There are penalties for taking withdrawals before age 59-1/2 and RMDs start at age 73. This is a popular strategy for those who expect to be in a lower tax bracket in retirement.
Roth IRAs provide tax-free growth. While you'll pay taxes at current rates on your contributions, your earnings grow tax free and qualified withdrawals aren’t taxed. Although there are penalties for taking withdrawals before age 59-1/2, Roth IRAs don't have RMDs like traditional IRAs or employer-sponsored plans, which allows more flexibility, including the transfer of funds to your beneficiaries.
Rolling over1 a traditional IRA, 401(k) or other employer-sponsored plan into a Roth IRA can be a good option since it lets you keep retirement savings in reserve until you need them.
While some types of retirement income are tax exempt, many are not. Given the complexities, tax planning is key to get the most from your income. Work with an advisor to build a tax-efficient distribution plan that considers:
You’ve worked hard to save money for retirement, but do you have a plan in place for spending it?
You probably have big dreams for retirement. That’s why comprehensive retirement income planning – for the short, medium and long term – is so important.
Don’t overlook the impact of taxes as you plot out your retirement income strategy.