Summary of Avoiding Taxes at Retirement

You have, no doubt, heard the expression, "There’s nothing certain except death and taxes." While this may be true, it is possible to minimize taxes by avoiding paying too much in unnecessary taxes. With some forethought and careful planning, it is possible to reduce the tax burden on your retirement income.

By taking minimum retirement distributions, your retirement fund can continue to grow while deferring taxes. Of course, you must be careful to avoid tax penalties for not taking required minimum distributions. Retirement plan distributions also affect taxes on your Social Security income. Estate and income taxes on retirement balances can also be avoided by using retirement-estate planning techniques such as using a joint and last survivor annuity with a partner.

Retirement, tax, and estate planning are complex. You may want to consult with a retirement and estate planning professional before making any irrevocable decisions regarding strategies that have far-reaching tax implications.