3 Totally Legal Ways to Shield Your Retirement Savings From the IRS
One of the hardest truths about retirement planning is that all that money you've been saving over the years isn't yours. Most of it is, but you're probably still going to owe the IRS a share in retirement.
But don't let this get you down; start planning instead. Here are three tips that can help you hold on to as much of your hard-earned cash as possible.
Retirement accounts are the best place for your savings because they offer tax advantages that taxable brokerage accounts don't. If you contribute to a traditional IRA or 401(k), you'll get a tax break this year. But you owe taxes on your retirement withdrawals. Or you can choose a Roth account. This won't give you a tax break when you make contributions, but you get tax-free withdrawals in retirement.
Source Fool.com
