Tax Planning for Retirement

Don’t let taxes do a number on your nest egg. The years leading up to retirement are a great time to look at your tax projections and determine strategies to keep your tax hit minimized. They can also help you to determine how you will spend your money in retirement and where you will take money out of and when. For example, if you have multiple Roth IRAs, you may decide to tap one before the other. Or maybe you have assets that you plan to sell off to help fund your retirement, so you can use a tax projection to determine the order in which assets should be sold off or which ones have the lowest tax hits. Of course, you will want to hire a tax expert to help you with your tax projections. That means finding a reputable tax planner or accountant who understands what you are looking to do and knows to ask the right questions. So, have you thought about taxes in retirement?