When you retire, your income usually flows from three possible sources: Social Security benefits, distributions from individual retirement accounts (IRAs) and retirement plans, and funds from savings and other investments. Depending on your income level, you may want to use certain tax strategies to minimize what Uncle Sam takes from you in retirement. Here are a few to consider.
Key Takeaways
- Most retirees rely on a few different sources of income, and there are ways to minimize taxes on each of them.
- One of the best strategies is to live in or move to a tax-friendly state.
- Other strategies include reallocating investments, so they are tax-efficient and postponing distributions from retirement accounts.
- Don’t forget to be strategic about Social Security: Benefits may be subject to taxes depending on your other income.
Live in a Tax-Friendly State
One of the best…
