Retirement Myth “You’ll be in a lower tax bracket when you retire.”
Over 20 years ago, the tax code was amended to provide for the taxation of Social Security benefits, which had been tax free since the inception of Social Security in 1935.
Today, up to 85% of these benefits can be taxed, subject to a formula, which includes tax free bond interest income. At age 70 1/2, you are required to take a Required Minimum Distribution (RMD) from pension, IRA, 401k assets or pay a penalty of 50% of what you are required to take but didn’t. Lower tax bracket- yea, right!
Do you know the best ways to legally minimize your taxes in retirement? If not, you could be forfeiting tens of thousands of dollars to the government needlessly. Why not keep that money yourself, or give it to your loved ones?
Call me at 856-428-3353 or use my contact page so we can schedule a time to review your tax liabilities, and explore ways to reduce your tax burden.