How to plan your income withdrawal strategy with taxes in mind.
Retirement should be a time of freedom—from deadlines and piles of to-dos. But you likely won’t be free of taxes. Although you won’t incur payroll taxes if you’ve stopped working, you will likely continue to owe other taxes on some of the withdrawals you take from retirement accounts, and on other retirement benefits. On the positive side, you may be in a lower tax bracket in retirement because you won’t be receiving a full-time salary anymore. However, you still may owe taxes on capital gains, withdrawals from retirement accounts, pension payments, Social Security benefits, and possibly a part-time job.