Retirement withdrawals are not just investment transactions. They determine taxable income, influence how much of Social Security is taxable, and can affect future Medicare premiums. A retiree who needs $70,000 to spend may need to withdraw a very different gross amount depending on whether the money comes from cash, a taxable brokerage account, a traditional IRA, or a Roth IRA. That is why a tax-smart withdrawal plan is built one calendar year at a time. The objective is not to pay the least tax this year at any cost. It is to support spending while managing taxes over the household’s…
Source: View original article