TERI Guide

Tax-efficient retirement income

The last thing you want to discover once you’ve retired is that you have less income than you’d planned, because you didn’t consider the impact of taxes.

With your advisor, use this guide to assess the tax diversification of your current investment plan and what changes you could make to optimize your retirement income and pay less in taxes.

Our tax-efficient retirement income (TERI) guide:

Illustrates how diversifying your investable assets by how they are taxed may help you achieve your retirement goals.
Provides an interactive experience that shows how making changes could potentially impact your retirement income.
Calculates the potential effect income taxes can have on your investments when making retirement withdrawals.

Tax-free

Current value

Annual contributions

Additional contributions

Taxable

Current value

Annual contributions

Additional contributions

Tax-deferred

Current value

Annual contributions

Additional contributions

Assumptions

Annual growth rate

Years to Retirement

Current income tax rate

The tax rates while accumulating represent the federal income tax bracket plus “Other” income taxes. The federal tax bracket affects the ordinary income tax rate and corresponding long-term capital gains rate that is applied to earnings during Accumulation (Taxable Portfolio only).

The federal tax rates shown below are based on taxable income which is generally gross income after deductions (including itemized deductions) and personal exemptions. A tax advisor can help determine the appropriate tax rates.

"Other" is available to capture state and local taxes, city, net investment income tax or other taxes you would like reflected in the assumptions. Include your relevant state income tax rate related to your state of residence. The additional federal tax of 3.8% on net investment income can be included here, if applicable.

IMPORTANT: You must enter an actual state income tax rate that is applicable to your individual circumstances (maximum tax rate within this tool is 17%). In order to obtain meaningful hypothetical calculations, you should not enter a rate that does not accurately reflect your state income tax rate. Please consult with your tax attorney or CPA, as necessary to obtain your appropriate tax rate.

2021 Federal Tax Rate	Single	Head of household	Married filing jointly	Married filing seperately
10%	$0 - $9,950	$0 - $14,200	$0 - $19,900	$0 - $9,950
12%	$9,951 - $40,525	$14,201- $54,200	$19,901 - $81,050	$9,951 - $40,525
22%	$40,526 - $86,375	$54,201 - $86,350	$81,051 - $172,751	$40,526 - $86,375
24%	$85,376 - $164,925	$86,350 - $164,900	$172,751 - $329,850	$86,376 - $164,925
32%	$164,926 - $209,425	$164,901 - $209,400	$329,851 - $418,850	$164,926 - $209,425
35%	$209,426 - $523,600	$209,401 - $523,600	$418,851 - $628,300	$209,426 - $314,150
37%	$523,601+	$523,601+	$628,301+	$314,151+

Federal

Other

Accumulation

Enter current values of your accounts and annual contribution.

You can make changes to where you are currently saving by adjusting the sliders below. You can increase your current savings in any category under additional contributions on the left.

You can make changes to where you are currently saving by adjusting the sliders below.
You can increase your current savings in any category under additional contributions on the left.

Retirement values

	Original contributions	Illustrated contributions
Tax-free	$0	$0
Taxable	$0	$0
Tax-deferred	$0	$0
Total	$0	$0

Net Income from retirement values

VALUE

Original contributions

VALUE

Illustrated contributions

In this hypothetical example we are assuming a withdrawal of 4% from each account on an annual basis.

Compare the net income from values based on original contributions versus illustrated contribution.

For more information click here

Income

Enter current values of your accounts and annual contribution.

You can make changes to where you are currently saving by adjusting the sliders below. You can increase your current savings in any category under additional contributions on the left.

Retirement withdrawal

Enter a retirement withdrawal to see the potential effect of income tax.

Income

VALUE

Gross

Withdrawal needed to net $1.00 after tax

$0	$0	$0
Tax-free	Taxable	Tax-deferred

Retirement can offer many new opportunities to enjoy new adventures or start new endeavors. Having a smart place to access money to help pay for these is important.

The income tax you pay in retirement will be determined by where you take withdrawals. Having assets in each category may allow you to have more control over paying additional tax, or avoid moving into a higher tax bracket, by taking money from the most desirable category when needed.

Fixed Life Insurance

NOT A DEPOSIT • not fdic insured • Not insured by any federal government agency • Not bank, credit union or savings and loan guaranteed

Investment products are not federally or FDIC-insured, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.

All hypothetical illustrations contained in this guide are for illustrative purposes only. We recommend that you consult with your financial advisor for an income strategy that is right for your individual circumstances.

Neither RiverSource Life Insurance Company, nor RiverSource Life insurance Co. of New York, nor their affiliates or representatives, offer tax or legal advice. Consult with your tax adviser or attorney regarding your specific situation.

RiverSource Distributors, Inc. (Distributor), Member FINRA. Issued by RiverSource Life Insurance Company, Minneapolis, Minnesota, and in New York only, by RiverSource Life Insurance Co. of New York, Albany, New York. Affiliated with Ameriprise Financial Services, LLC.

Tax-efficient retirement income

Tax Control Triangle

Accumulation

Retirement values

Income