Tax planning in retirement
Although many things change upon retiring, one thing that doesn't is paying taxes. All distributions you receive from your employer-sponsored retirement plan are included in your taxable income and taxed according to the tax bracket into which you fall; the only exception to this is with Roth plans, in which contributions are made after taxes and all distributions are tax-free.
Minimizing your tax burden is yet another way to preserve your retirement savings. If you don't need to rely on your retirement savings early on, a straightforward way to lower your taxable income and preserve your savings for later is to withdraw the minimum amount possible from your account.
Representatives of GWFS Equities, Inc. are not registered investment advisers, and cannot offer financial, legal or tax advice. Please consult with your financial planner, attorney and/or tax adviser as needed.
