Too much retirement income

[PFAKENNY]

What is the name of your state? CA

What is the best way to minimize ordinary income tax liability as much as possible when I retire at 65(62 now)? I will receive $20,000 a month from company's pension plan and around $10,000 from annuity (rollovered from 401K currently hold for $1.3Million)
Any suggestions??What is the name of your state?

 

[LdiJ]

What is the name of your state? CA

What is the best way to minimize ordinary income tax liability as much as possible when I retire at 65(62 now)? I will receive $20,000 a month from company's pension plan and around $10,000 from annuity (rollovered from 401K currently hold for $1.3Million)
Any suggestions??What is the name of your state?

There really isn't any real way to minimize income tax liability from pensions and retirement plans. You can avoid taking any distributions from the the annuity until you are 70 1/2, but other than that, the income is going to be reported on a 1099 R, will be an ordinary distribution, and you will have ordinary income tax liability.

In order to minimize penalties for underwithholding, make sure that you have enough federal and state tax withheld from both the pension and the annuity.

 

[CAowner]

Well, you could move to a state with no income tax.... Tennessee, New Hampshire, Nevada, South Dakota, etc...