Pay Me Now, or Pay Me Later…FaLaLaLaLa
That might be the tune of the IRS when it comes to tax deferred instruments, like 401(K)’s or IRA’s. While it is good to grow tax deferred income, it is also advisable to be aware of tax strategies and consequences when approaching retirement age or considering early retirement.
There is another excellent article from our friends at Squared Away – an interview with financial adviser Michael Kitces *. The article/interview should be on your “must read” holiday list.
The article is titled: Retirees’ Tax Puzzle: Pay Now or Later? (December 1, 2016 – Interview From Squared Away blog) .
For those facing the Required Minimum Distribution (RMD) in the coming years, the interview is not only pertinent, but the details within the interview can help to analyze their tax situation; sooner rather than later.
Readers can access the interview through the Squared Away blog website: squaredawayblog.bc.edu
The full article takes only a few minutes to read but as the Squared Away blog suggests: “The challenge facing retirees is to make tax decisions today that will minimize taxes now and in the future.”
* Michael Kitces writes the Nerd’s Eye View blog and is a partner with a Maryland financial firm. His blog is written from the perspective of financial planners/advisers; but there is plenty of sound advice for the “general reader”. One suggestion: “How To Raise Children To Be The Opposite Of Spoiled – Using Money To Teach Values” is a timeless article.
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