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

Another Federal Tax Record Set in October

  As the year winds down and we look ahead to another tax season, the Federal Reserve is looking at another record tax collection in October. According to the latest numbers released in the Monthly Treasury Statement, October set an all time record high for the month, with $221,692,000,000 collected. What a great way to…

Top Tech Issues to Watch With Trump

Top Tech Issues to Watch With Trump

Top Tech Issues to Watch With Trump Now that Donald Trump is set to become the nation’s 45th president, there is a lot of talk about his proposed tax policies and how they will affect taxpayers from all walks of life. Taxes are of course a huge issue so it makes sense that they are…

Voters in Multiple States Choose Higher Taxes for the Wealthy

  Of course, the big news from the election earlier this month was that Donald Trump shocked the world and defeated Hillary Clinton in the race to become the 45th president of the United States. However, there were several other important national, as well as local, election races and issues that were decided on November…

U.S. Treasury Making Push to Keep More Corporate Taxes Home

  For any company considering a tax inversion, the latest news form the U.S. Treasury will likely make it reconsider. Tax inversions, which are used by American companies to reduce their tax bill, occur when a company acquires or opens a subsidiary in a foreign country in order to change its tax address and save…