Will Your Taxes Really Be Lower in Retirement? – Episode 210

Several weeks back, we talked about how different types of retirement income are taxed. This topic created a follow-up question from several listeners who wanted to know: Will I be in a lower – or higher – tax bracket in retirement?

You might think that once you begin retirement, your tax bill will tend to go up at first, since people normally have much (if not most) of their retirement funds in a company retirement plan (401k, 403b, etc.) – all of which are taxable upon withdrawal at ordinary income rates.

But this may not necessarily be the case. It all comes down to proper planning. In this week’s episode of Managing Your Financial Future, podcast host Johnny Dean and “Professor” Rick Plum, CFP® talk about what you might expect to see from your taxes once you hang it all up for good!