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4 Steps for Managing Income Withdrawals in Retirement
If you’re like most Americans nearing retirement, you’re worried about whether you have enough savings. In fact, only 22% of those approaching retirement believe they’ve saved enough to retire comfortably.
At a time when the stock market is down, inflation is rising and Americans are living longer than ever, concerns over the sustainability of retirement savings are no surprise. What you may not realize is that there are approaches that can stretch the savings you do have to position yourself more favorably in retirement.
One such strategy is . Essentially, when you make a Roth conversion, you pay the taxes that would otherwise be due during retirement at the time you convert. Then, when you retire, you’ve already paid the tax that you would otherwise pay during retirement on required minimum withdrawals (RMDs) from traditional IRAs. As tax laws currently stand, those withdrawals must begin at age 72.
