How Will Taxes Affect Your Success in Retirement?

retired couple

Are you at that point in your career where the number of years you’ve already worked greatly outnumber the years you have left to put in? If retirement is just around the corner for you, or even still out on the horizon a bit, you should be using this time to get ready for taxes. Taxes in retirement can suck a lot of money from your monthly income so making smart moves now can make a huge difference.

The last thing you want to do is run out of money in retirement. So keep these tips in mind to make sure you have plenty to get by. For starters, you need to know which bracket you fall in. If you move up the tax bracket ladder it could cost you because the portion of your social security check that is subject to taxes could go up. Therefore, if you can lower your income bracket by adding more to a retirement account or by prepaying some deductible expenses that is a good idea.

Another way to combat taxes in retirement is to make strategic withdrawals between the years you retire and the time you have to start withdrawing a minimum amount at age 70 and ½. Choosing the proper balance between taxable accounts and tax-deferred accounts is also crucial to saving on taxes in retirement.

You can learn more about saving on taxes in retirement by contacting GROCO today. Just call 1-877-CPA-2006 or click here.

http://www.usatoday.com/story/money/personalfinance/2016/05/28/cnbc-retirement-savings-taxes/85047974/

Posted in
Last-Minute Tax Tips for High Net Worth Taxpayers

Last-Minute Tax Tips for High Net Worth Taxpayers

Last-Minute Tax Tips for High Net Worth Taxpayers If you’re one of those taxpayers that like to wait till April to file his or her taxes, then there are still some new things you should know about before you file. That’s especially true if you’re a high net worth individual or an investor. By now,…

What Should You Do if You Can’t Pay Your Tax Bill on Time?

What Should You Do if You Can’t Pay Your Tax Bill on Time?

What Should You Do if You Can’t Pay Your Tax Bill on Time? The 2019 tax season is in full swing and it’s already come with several changes and surprises. One of the biggest surprises is the number of taxpayers that are either getting a much smaller refund, or not getting a refund period. However,…

Could This Year’s Tax Refund Be Bigger Than Last Year’s?

Could This Year’s Tax Refund Be Bigger Than Last Year’s?

Could This Year’s Tax Refund Be Bigger Than Last Year’s? If you’ve heard anything about the 2019 tax season, it’s probably that refund amounts are way down. That storyline has made a lot of news. And opponents of the Tax Cut and Jobs Act (TCJA) have definitely used it as “proof” that the changes were…

Could These Tax Deductions Save You Big?

Could These Tax Deductions Save You Big? It’s tax time. Of course, you know that already, unless you’ve been hiding under a rock for the last several weeks. Tax time means refund time, right? Not for everyone, but in most cases, yes. But so far this year, refunds are down and many taxpayers have been…