5. Managing taxes during retirement


Life’s Financial Journeys

Heading Off to College
Getting Out on Your Own
Blending Two Lives
Having a Child
Emptying the Nest
Entering Retirement
Divorce
Death of a Life Partner
Military Life

One thing we know for sure, income gets taxed and income taxes are what funds our government. The importance of income taxes in retirement requires that you understand the unique aspects of taxes for retirees.

The following subtasks may assist you in managing taxes during retirement. You will find detailed resources for these subtasks under the links in the right column of this page.

Subtask 1: Understand how your Social Security benefits are taxed

Subtask 2: Understand how income from your IRA, 401(k), 403(b), and other retirements accounts are taxed

Subtask 3: Understand the tax impacts of taking retirement plan income early

Subtask 4: Take mandatory distributions before age 70½ to avoid tax penalties


Entering Retirement Tasks

1. Selecting your retirement lifestyle
2. Estimating your monthly retirement income
3. Setting up your spending plan
4. Enrolling in Social Security and Medicare
5. Managing taxes during retirement

Managing taxes during retirement Subtasks

1. Understand how your Social Security benefits are taxed
2. Understand how income from your IRA, 401(k), 403(b), and other retirement accounts are taxed
3. Understand the tax impacts of taking retirement plan income early
4. Take mandatory distributions before age 70½ to avoid tax penalties

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