When you're planning for retirement, it's fun to contemplate all the cruises, rounds of golf and restaurant meals you have ahead of you. You've earned it! However, many retirees don't take into consideration the cumulative impact of federal and state income taxes on withdrawals from their nest eggs.
Unfortunately, most forms of retirement income — including Social Security benefits, as well as withdrawals from your 401(k)s and traditional IRAs — are taxed by Uncle Sam. And unless you live in one of nine states without a traditional income tax, you can expect your home state to ding you in retirement as well.
So, do yourself a favor before you retire and make sure you are familiar with ten common sources of retirement income you are likely to face federal income tax on:
Traditional IRAs and 401(k)s
CDs, Savings Accounts and Money Market Accounts
Schedule a consultation with Skip West at West Financial Group today and find out how you can maximize your retirement.