This case study should illustrate that, although the stated goal of the Tax Cuts and Jobs act was to deliver tax savings while simplifying the tax code, retirees who have multiple streams of income should be highly aware that making smart decisions about which income streams to use at which points in retirement can still have a massive impact on their total tax bill. Further, the interactions between the different types of income streams for middle income people is not where most tax professionals make their money. They make their money on their bigger corporate clients who will all have significant questions as the bill creates significantly greater change for corporations and self-employed people, so find a financial planner who understands and has equipped themselves with tools to help you make sense of the changing tax landscape.
Joe Elsasser, CFP, RHU, REBC, is president of Covisum, a company that provides software for advisors and financial institutions.
Editor's Note: This article's original headline used the word "Create" instead of "Eliminate" and gave the wrong impression about the article's topic.