RETIREMENT IS A WHOLE NEW phase of life. You’ll experience many new things, and you’ll leave others behind — but what you won’t avoid is taxes. If you’ve followed the advice of retirement plan consultants, you’re probably saving in tax- advantaged retirement accounts. These types of accounts defer taxes until withdrawal, and you’ll probably withdraw funds in retirement. Also, you may have to pay taxes on other types of income: Social Security, pension payments or salary from a part-time job. With that in mind, it makes sense to develop a retirement income strategy.
CONSIDER WHEN TO START TAKING SOCIAL SECURITY. The longer you wait to begin your benefits (up to age 70), the greater your benefits. Remember, though, that currently up to 85 percent of your Social Security income is considered taxable if your income equals more than $34,000 each year.
BE COGNIZANT OF WHAT TAX BRACKET YOU FALL INTO. You may be in a lower tax bracket in retirement, so you’ll want to monitor your income levels (from Social Security, pensions, annuity payments) and any withdrawals to make sure you don’t take out so much you get bumped into a higher bracket.
THINK ABOUT YOUR WITHDRAWAL SEQUENCE. Generally speaking, you should take withdrawals in the following order: Start with your required minimum distributions from retirement accounts. You’re required to take these, after all.
Since you’re paying taxes on taxable accounts, make this the second fund you withdraw from.
Withdraw from tax-deferred retirement accounts like IRAs, 401(k)s or 403(b)s third. You’ll pay income tax on withdrawals, but do this before touching Roth accounts.
Lastly, withdraw from tax-exempt retirement accounts like Roth IRAs or 401(k)s. Saving these accounts for last makes sense, as you can take withdrawals without tax penalties. These accounts can also be used for estate planning.
These factors are complex, and you may want to consult a tax professional to help you apply these tips to your own financial situation. You can test different strategies and see which ones can help you minimize the taxes you’ll pay on your savings and benefits.
The content of this article is for informational purposes only. It is not intended to be a substitute for professional financial advice. Always seek the expertise of a certified financial advisor or other qualified provider with any questions you may have regarding personal finance, investment and money-related issues.
Galataport Istanbul, a new cruise and lifestyle destination on the Bosphorus in Istanbul, welcomed its first ship, SeaDream II, on Oct. 1. Approximately 150 passengers and crew from Bulgaria Varna arrived at 10 a.m. for a two-day homeport operation before continuing to Bulgaria Burgaz.
History and culture are etched into every corner of Greece. Beginning with its language, the oldest written language still in existence, and moving from the traces of passing civilizations and religions to pre-historic findings and works from many movements, there’s a wealth of culture to discover on your next trip to Greece.
The countdown to Halloween weekend is on! Are you are still unsure about plans? Do you go to a house party? Stay in to hand out candy? Try something different this year and join Philadelphia’s The Mütter Museum at its 6th annual Mischief at The Mütter.
There’s an aspirational rustic chic/farm-to-table restaurant genre often associated with Northern California’s wine country. When you drive down the main street of Napa, Sonoma or any of the other towns, it appears there are as many of them as there are vineyards. And there’s absolutely nothing wrong with this genre, as the quality of the food is consistent and ambitious chefs earnestly endeavor to elevate home-style dishes to a higher standard.
This holiday season, escape to the Caribbean with Celebrity Cruises and reconnect with family and friends in luxurious accommodations that make you feel right at home. Savor globally inspired cuisine designed by our Michelin-starred chef, paired with the most awarded wine collection at sea. Elevate “me time” with a soothing spa treatment sure to renew. With both long and short cruises to celebrate in December, and even three special Ultimate Holiday Cruises that sail over Christmas and into the New Year, the time to gift an experience and create unforgettable memories is now. Celebrity Cruises’ Always IncludedSM pricing — drinks, WiFi and tips — ensures a seamless, carefree vacation with the ones you love.
The InterContinental Mark Hopkins San Francisco announced a new amenity for guests in collaboration with Porsche. Porsche electric vehicle charging stations will now be located in the valet area of the hotel’s parking deck, allowing guests and visitors to top off the batteries of electric vehicles while enjoying a cocktail at Top of the Mark, enjoying farm-to-table fare at Nob Hill Club or staying overnight at the property.
Without a doubt, the pandemic changed the role of airports in the travel industry. Hamad International Airport’s role evolved in many ways since the pandemic hit. Now, more than ever, airports are responsible for creating a secure passenger experience. As the gateway to Qatar and the world, the safety and wellbeing of staff and passengers has always been at the core of Hamad International Airport’s strategy.
It’s time to start dreaming of your next trip. Here’s some destination inspiration for you. Take a visual journey through Reykjavik with us.