Many People Think That Retiring Means Lower Taxes, But That’s Not Always True
Taxes in Retirement: How to Minimize Your Tax Bill
According to Kiplinger, Many American think that when they retire, they won’t have to pay as much in taxes. But that’s not always true. The government still wants its share of the money you’ve saved. In fact, there are special rules that can affect how much you have to pay in taxes.
If you use a QCD, a certain type of transfer, you can save on fees. This lets you give money to a church or charity without having to pay taxes on it. Moving some of your money from a tax-deferred account to a Roth IRA is another way to save. If you do this, you might not have to pay taxes on your money when you leave.
Preparing for the Future: Why Tax Planning is Crucial in Retirement
Tax rules could change soon, so it’s good to think about them now. The government has said that in 2026, some tax rules will be the same as they were before 2017. Your tax bill might go up because of this.
That’s why it’s smart to get help from a financial expert. They can help you plan for the future and guard against being shocked by higher taxes.