It would seem to make some sense that once you begin retirement retirement, your tax bill will tend to increase - at least in the early years. The logic is that people normally have much, if not most, of their retirement funds in a company retirement plan (401k, 403b, etc.), which are all taxable upon withdrawal at ordinary income rates.
But is this really the case? Should retirees simply resign themselves to giving up a big chunk of their retirement savings to Uncle Sam? In this week’s episode of Managing Your Financial Future, podcast host Johnny Dean and our “Professor” Rick Plum, CFP® talk about why you may actually owe less in taxes than you thought you would when you retire.
