Surprise, you may have to pay income taxes in retirement, sometimes even on your Social Security benefit. Most people don’t realize how important it is to make sure tax planning is addressed in your overall retirement plan, especially RMDs (Requirement Minimum Distributions), which the IRS requires you to take out of tax-deferred accounts yearly starting at age 70-1/2, possibly bumping you into a higher income tax bracket. A comprehensive retirement plan always addresses RMDs.

At APO Financial, we take a close look at all your accounts to see how much money you will be paying to the IRS when RMDs begin. In some cases, if you have more than, say, $500,000 in tax-deferred accounts, we may recommend that you start slowly converting some of those into an option like a Roth IRA, which is not subject to tax or mandated withdrawals. We will help you look at all your options to reduce taxation in retirement so that you can keep more of your money instead of paying it to the IRS.