Just because you are retired and no longer working, doesn’t mean the taxman won’t come looking for you. If you’ve been saving your retirement money in a traditional IRA, then your withdrawals from that account will be taxed when you take them. After all, a traditional IRA allows you to avoid taxes on contributions, but in return distributions get taxed. If you have receive a pension from an employer (aside from the military or disability), then that too will be taxed as it is viewed as income by the IRS. If you have investments made outside of an IRA or 401(k) that you intend to help fund your retirement with, then any gains made by those investments may also be subject to taxes. Now, I’m not here to talk about how to calculate those taxes, but rather to remind you that taxes do not go away once you retire. Also, if are concerned about your future tax bracket (i.e. what it will be when you make the withdrawals) and want to look at ways to avoid such a tax hit, you may want to consider retirement plans that tax the money when it goes into the account instead of when it comes out. That’s exactly what Roth IRAs and Roth 401(k)s do. Thus, if you would rather get taxed sooner rather than later, then you may want to strongly consider Roth accounts. Now, Roth IRAs and 401(k)s aren’t for everyone and there are certain situations where having one actually may not be a good idea. If you have questions about your future taxes or Roth accounts, you should speak with a certified financial planner or tax expert.