Just as taxes can be a major burden during your working years, they can also wreak havoc on your finances during retirement. And that’s the last thing you want. If your goal is to pay less tax as a senior, you can accomplish it by doing these key things.
It’s important to save money for retirement so you have income to supplement your Social Security benefits.
But not all savings plans are created equal, and if you’re concerned about taxes in retirement, then it pays to keep your money in a Roth IRA or Roth 401(k). With a Roth savings account, the withdrawals you take in retirement will be yours to enjoy tax-free. That, in turn, will make budgeting a lot easier during this new stage of life.