Can you expect to pay more taxes when you retire? Yes. However, it will depend on how much income you earn. Is it from work? Is it from work? It’s important to know which retirement plans will finance your retirement.

Consider the impact Social Security has on your retirement. When will you begin to receive Social Security benefits? When do you plan to start receiving benefits if you have a spouse? You need to answer the key questions about Social Security benefits so that you can better understand how it will impact your taxable income.

What is a pretax investment? Traditional retirement plans and 401(ks)s are two examples of pretax investments that can help you save for retirement.

Until you begin taking distributions, you won’t have to pay taxes on any contributions to these accounts. These investments, also known as pre-tax investments, are tax-deferred investments. This is because the money that you have in these accounts can enjoy tax-deferred growth.

Individuals covered by a workplace retirement plan will see the tax deduction for a traditional IRA phased out in 2021 for incomes between $105,000 to $125,000 for married couples filing jointly and $66,000 to $76,000 for single filers.

Remember that you will need to start taking minimum distributions from a traditional IRA or 401(k) once you turn 72. Withdrawals are treated as ordinary income. If taken before age 59 1/2, you may be subject to a 10% federal tax penalty.

What is an after-tax investment? The most popular one is the Roth IRA. A Roth IRA allows you to make a contribution with after-tax dollars. Contributions to a Roth IRA can be made based on income, just like a traditional IRA. Contributions to a Roth IRA, like a traditional IRA, are limited based on income.

Roth IRA distributions after the age of 59 1/2 must be held for five years to qualify for tax-free or penalty-free withdrawals of earnings. You can also withdraw tax-free or penalty-free if you die. Minimum annual withdrawals are not required for the original Roth IRA owner.

This article is intended to be informative only. It is not meant to replace real-life advice. Before you modify your retirement strategy, make sure you consult your tax, legal or financial professionals.

Do you want to improve your tax efficiency? This is a topic worth discussing in retirement. You can make a few financial adjustments to help manage your tax obligations.

This post was written by All Seasons Wealth. At All Seasons Wealth, we provide expert advice and emphasize the importance of creating in-house portfolios to personalize your strategy for asset management, financial planning, and cash management. We utilize research and perform market analysis to provide you with the top financial advisors in Tampa. No matter your needs, we can work with you to develop a consulting solution tailored to you.

Any opinions are those of All Seasons Wealth and not necessarily those of RJFS or Raymond James. Investing involves risk and you may incur a profit or loss regardless of the strategy selected. Investing involves risk and you may incur a profit or loss regardless of the strategy selected. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment. Past performance may not be indicative of future results.