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Not all your retirement income is taxable
Estimating your future tax rate is a factor in deciding whether or not you should make Roth or pre-tax contributions and how much you need to save for retirement. The majority of your income earned while working is fully taxable at ordinary income tax rates. However, when you are retired, this is only true for pension income, withdrawals from taxable retirement accounts, and any rental, business, and wage income you have. Erik Carter explains why even if you are retired in the same tax bracket, your effective tax rate may be lower. Read Mr. Carter’s article here…