Will I pay more taxes when I retire?

Retirement


Have you ever heard the phrase, “Taxes will be cheaper in old age”? Well, most of our clients don’t pay less taxes when they retire. they pay more.

The main reason is that when you retire, you have Social Security and require a minimum distribution (RMD) from tax-deferred investments (IRAs, 401(k), etc.). Combining RMD and Social Security income can create a so-called “tax torpedo” if the tax deferred investment has significant value.





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