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10 Ways to Curb Taxes in Retirement Tips on withdrawal sequencing, maximizing your deductions, and more.

Source: news.morningstar.com - Mar 4, 2017

While you're still working, much of what you owe in your taxes in any given year is preordained by your salary. Sure, you might have room to lower your tax bill by making tax-deductible IRA and 401(k) contributions, for example, or deducting your mortgage interest. But the size of your paycheck is by far the biggest determinant of the taxes you owe on a year-to-year basis.

Taxes are different in retirement. If you're no longer earning a paycheck, the taxes you'll owe will depend on your spending and where you draw your cash from: Social Security, your IRAs, a pension, and so on. Of course, you lose a bit of control over your tax bill once required minimum distributions from traditional retirement accounts commence at age 70 1/2. But it's safe to say that retirees exert more control over their tax bills than do working people.

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Category: General Business