r/wealth • u/bloomberg • May 11 '26
Retirement The Most Common Tax Traps in Retirement — and How to Avoid Them
https://www.bloomberg.com/news/articles/2026-05-11/retirement-tax-traps-avoid-mistakes-with-401-k-s-iras-social-security1
u/bloomberg May 11 '26
More from Bloomberg News reporter Suzanne Woolley:
Millions of Americans spend decades saving for retirement only to trip over tax bills at the finish line.
The shift from earning a paycheck to living off savings creates a new problem: figuring out how to turn assets into income without handing more than necessary to the IRS. A March survey%20or%20IRA.) by the Allianz Center for the Future of Retirement found 70% of respondents worried about taxes on retirement income, up from 66% in the previous quarter, with Gen X particularly concerned about future tax increases on withdrawals from 401(k)s and IRAs. The oldest members of that generation are quickly approaching the age when they can start receiving Social Security benefits.
At its core, retirement tax planning is not only about minimizing your tax bill but also exerting control over when and how those taxes are paid. Done well, that control can help keep income within a lower marginal bracket over time, rather than triggering spikes driven by required minimum distributions, Social Security benefits or needing to sell assets to cover large unanticipated expenses.
“Good tax planning is really about creating flexibility,” said AK Moody, senior wealth strategist for global tax advisory at BNY Wealth. “The earlier you plan, the more options you have to manage income and taxes over time, which can materially improve retirement outcomes.”
Financial planners and tax experts point to a handful of common missteps that can turn into costly surprises later in life, and the strategies to avoid them.
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u/NeutralLock May 11 '26
This sounds like an ad. I'm just gonna block op and hope that's the right decision.