The Tax Man Is Always There, Even in Retirement
Working and paying taxes is a way of life during the years leading up to retirement, but it’s important–critical, actually–to be aware that taxation doesn’t retire with you. In fact, for many reasons, it becomes an issue that typically requires more planning on your part than you may be accustomed to. For example, for most of us, employers took care of the collection of payroll taxes and forwarded them to Uncle Sam on our behalf, but when you exit that payroll, you’re on your own. Likewise, if you remain in the workforce after beginning to draw benefits, you’ll need to keep a watchful eye on total income and its impact on taxation of those benefits. The bottom line: dealing with income tax issues does not go away when you retire…in fact it’s level of complexity can increase! The Motley Fool’s Wendy Connick, in a post on host.madison.com, provides a recap of several key issues you need to be aware of on this subject. Read her post here…