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Will I be in a lower tax bracket when I retire?
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New York -  If your income in retirement does not decreases, it is a good change that your tax bracket will not either. If you've saved substantially during your working years, you may actually be in the same or a higher tax bracket when you retire.

In order to calculate your exact tax bracket, you need to calculate what your known taxable income will be. This includes the following income:

  • Distributions relating to an IRA,

  • 401-K plans

  • Social security

  • Corporate benefit plans

  • Dividends and interests

Compare your retirement income with your pre-retirement income and adjust your deductions accordingly.

Tax law and issues are every changing and is extremely complicated. Even if you always did your own taxes and plan on doing so when you retired, you should consulting with an independent Fee-Only financial adviser to ensure there are matters that you have not overlooked.

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The Independent Adviser Corporation is a 100% Independent and 100% Objective Financial Advisory Firm that writes buy-side investment research. Our network of independent Fee-Only Financial Advisers serves individuals, families and businesses. They provide financial planning services, tax advice and offer professionally managed asset accounts. They do not underwrite corporate securities nor do they sell any proprietary products. To find out more or get a FREE consultation Ask The-Adviser.com or call 1-800-ADVISER.

 

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If you have a fully paid off home, the loss of the interest deduction may result in a higher taxable income when you retire?


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