50% of Older Americans Think They Don't Know Enough About Taxes in Retirement
Retirement may be exciting to look forward to, but the flip side of that excitement is financial stress. Once you retire and transition to a fixed income, you'll need to be even more judicious about managing your money, and among other things, that means properly handling your tax situation. Yet according to a recent survey conducted for Nationwide, 50% of pre-retirees aged 50 and over say they wish they better understood how their retirement income will be taxed.
If you too feel you don't know as much as you ought to about that, here are a few key points.
Ideally, you'll be entering your golden years with a decent amount of money in retirement savings. But if you're housing those investments in a Traditional IRA or 401(k), you'll pay taxes on the withdrawals you take from your accounts, including required minimum distributions, which apply if you don't have a Roth IRA.
Source Fool.com
