Don’t Be Someone Who Hits Your Retirement Account Too Early

According to a recent study by the Treasury Department and the Joint Commission on Taxation, for every dollar that Americans under the age of 47 save for retirement, they withdraw 20 cents before reaching age 55. That may not sound like much, but that a fifth of a dollar. Furthermore, a 2019 report by the Government Accountability Office found that Americans during their prime working years withdrew almost $70 billion annually from retirement accounts–that is, before they reach retirement age. That’s a lot of money. I get it though, that retirement money can be tempting, especially if times are a Continue reading Don’t Be Someone Who Hits Your Retirement Account Too Early

Don’t Let Taxes Surprise You in Retirement

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) Continue reading Don’t Let Taxes Surprise You in Retirement