When the time comes for you to move on from your current employer either because it’s time to retire or because you wish to pursue your fortunes elsewhere, IRA rollover rules might be a concern. You’ll want to know how to get the money you saved in your employer-sponsored retirement plan, herein referred to as the 401k.
Paying income tax in retirement affects your retirement plans significantly. If you plan on spending a specific amount of money – say $100 – you may be left with much less after paying your income taxes.
While it’s impossible to entirely avoid taxation on your income, anticipating these tax burdens can help you minimize income taxes in your retirement. Below is a highlight of investment and withdrawal strategies that form the basis for tax planning for retirees.