Three Essential Strategies to Cut Your Taxes in Retirement
Optimize Your Tax Withdrawals
To effectively cut your taxes in retirement, consider carefully timing your withdrawals from tax-deferred accounts. By diversifying the accounts you draw from each year, you can manage your tax bracket and potentially reduce the overall taxes owed.
Utilize Tax-Loss Harvesting
Implement tax-loss harvesting in your taxable accounts. This involves selling underperforming investments to offset gains, effectively reducing the taxable income.
Consider Roth Conversions
Explore Roth conversions as a strategy for tax minimization during retirement. Converting traditional retirement funds into Roth accounts can offer tax-free growth and withdrawals, an advantageous position for retirees.
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