Manage your tax brackets in retirement

When planning for retirement, many people think that what they see in their retirement accounts is what they’ll have to spend in retirement. What they sometimes forget about are the taxes they will need to pay on certain withdrawals, like those from traditional 401(k)s and IRAs. “It’s not what you earn that counts but how much you get to keep after taxes,” says Matthew Kenigsberg, vice president in Fidelity’s Strategic Advisers. “Also, managing your tax brackets in retirement can help preserve more of your money for the next generation.”

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