|
How to Save Big on Taxes in ‘The Goldilocks Zone’
Source:
kiplinger.com
- Feb 17, 2017
The five-year period from age 65 to 70 offers a unique opportunity for many to potentially save tens of thousands through Roth IRA conversions.
When people retire they often drop down a tax bracket because they no longer have any earned income. For example, a couple may be in a 25% tax bracket while they're working, but after they retire they could easily find themselves in the 15% tax bracket.
Once they reach age 70 1/2, these retirees have to start taking required minimum distributions out of their IRAs and other tax-advantaged retirement plans. Also, they may have delayed Social Security until 70 to get a bigger check. When all of this extra taxable income kicks in after age 70, they often jump right back up into a higher tax bracket, like 25%, for the rest of their lives.
CLICK SOURCE ABOVE TO READ ENTIRE ARTICLE
Category: General Business
|
