Q: What are some of the best ways to minimize taxes when cashing out of my retirement plan?
A: This will depend on a few different factors. Be aware that, as a starting point, retirement distributions are taxed as ordinary income, and could trigger a penalty if accessed early. Keep in mind though, when you withdraw in a low-income year, those penalties are lessened by that fact. Outside investments that generate passive income losses, such as oil & gas and rental properties, can be a good way to blunt the effects of cashing out of the retirement plan. Best practice is of course is to run all this by your advisor and get a qualified, second opinion.