What to Know About Taxes

Many retirees are surprised to find that their taxes can increase in retirement rather than decrease. Withdrawals from tax-deferred accounts like IRAs and 401(k)s are fully taxable, and required minimum distributions can push total income higher when combined with Social Security, pensions, and other sources. With up to 85% of Social Security benefits potentially taxable, having a strategic withdrawal plan—including tax-free options like Roth IRAs—can help reduce overall tax liability. . . . The information contained in this post is general in nature and for informational purposes only. It should not be considered as investment advice or as a recommendation of any particular strategy or investment product. This post is not a solicitation or an offer to buy or sell any specific security.