If you're retired or about to retire, think carefully about your tax strategy
NEW YORK (AP) — Coming up with the best tax strategy in retirement can be much trickier than it seems, and tax pros agree it’s a time when people need to be especially careful to look at their entire financial picture before deciding on things like 401(k) withdrawal amounts and timing, or when to begin taking Social Security.
“It’s the biggest change in life other than death. Don’t be so quick about deciding when to take Social Security benefits or 401 benefits. Talk to a tax professional before you make these decisions to avoid surprises. It may save you a lot in tax dollars,” says Tom O’Saben, director of tax content and government relations at the National Association of Tax Professionals.
Withdrawing a large amount to do something like pay off a mortgage could result in a dramatic increase in what percentage of your Social Security benefits will be taxed, for example.
Related articles
Congo military releases 2 Kenya Airways staffers held for 2 weeks over cargo dispute
NAIROBI, Kenya (AP) — The Republic of Congo’s military has released two Kenya Airways staffers who w2024-05-08TVNZ staff want to know why profitable shows are being cut
Photo: RNZ / Marika Khabazi2024-05-08Person dies after crash in Waipā, Waikato
Photo: RNZ / Marika Khabazi2024-05-08ACC admits it failed amputee over unpaid entitlements
Ann Nicholl and Karen Sinclair, the family of Alexandra man Alan Keith Nicholl, have fought ACC for2024-05-08How Queen Mary could look to Queen Silvia: King Carl Gustaf and his wife's 47
King Frederik X of Denmark and his wife Queen Mary have arrived in Stockholm today for their first s2024-05-08
atest comment