How Taxes Affect Retirement Savings (and What to Do About It)

When people think about their retirement plans, they often focus on saving and investing so that they have a good nest egg when they retire. And that’s a good place to start. But it’s also important to consider the tax implications of retirement savings and other sources of income you can use when you reach retirement.

Unfortunately, taxes don’t go away when you stop getting paid. Even if you no longer work, you will still receive income in the form of retirement account distributions, Social Security benefits and possibly pension payments. And if you underestimate the potential tax liability – yes, even in retirement – you could be losing a large portion of your earnings.



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