It would be nice to think that, once you retire and no longer are “bringing home the bacon,” worrying about paying taxes would be a thing of the past. But that is not the way Uncle Sam works.
In fact, unanticipated taxes in retirement can disrupt an otherwise well-crafted retirement plan. Perhaps it’s not surprising as to why financial professionals call this situation a “tax time bomb.” For this reason, it’s important to consider the impact of taxes when preparing your retirement plan, so you can make well-informed choices ahead of time and budget for taxes as part of your retirement expenses.
What you will pay in taxes during retirement is unique to you and to the make-up of your retirement income sources. But one thing that seems to be universal can be this: how big a tax bite that retirees may face.
