Planning for retirement involves more than just accumulating savings. The money you’ve accumulated must be turned into income—and this means paying taxes.
Most people save for retirement in tax-deferred accounts, such as 401(k)s. But tax-deferred means just that: at some point, you’ll have to pay taxes on all this money.
Tax-deferred accounts come with Required Minimum Distributions (RMDs) at certain ages. Proactive tax planning may save you significant amounts of money in taxes over your retirement years.