After years of saving and planning for their golden years, many people nearing retirement fail to consider the tax burden they may face on income they receive after they stop working. While you will likely see a reduction in the amount of taxes you owe after the age of 65, you still need to plan ahead if you want to minimize your tax bill from the IRS.
Covers employer-sponsored plans, individual retirement accounts and annuities, as well as taxation of different accounts, and how to allocate monies and prioritize retirement contributions.
After years of saving for retirement, you’ll eventually be ready to start spending the money you’ve worked so hard to set aside. As you make the transition into retirement, you may worry about how much you can comfortably afford to spend without depleting your assets too quickly.
f you inherit a traditional individual retirement account (IRA), you basically inherit the income taxes that will be payable when money is withdrawn from the account. Your tax liability could be significant if you take all the money out of the IRA right away. You might come out ahead in the long run by choosing another option.