I'm 50 and 90% of my money is tied up in retirement accounts - is there any way to avoid a massive tax bill?

This article discusses the challenges of managing taxes in retirement, especially for those heavily invested in traditional IRAs and 401(k)s. It highlights the importance of tax diversification to minimize tax burdens during retirement. The article mentions a case of a 50-year-old contemplating retirement, emphasizing the potential tax implications of living abroad. It suggests a proactive approach, including Roth conversions, and advises consulting a financial professional to optimize timing and withdrawal strategies for a more secure financial future.

Taxes can be a major hassle at any point in life. But in retirement, they can be especially problematic. When you're living on a fixed income, the last thing you want is to lose a portion of it to the IRS.

It's a good idea to diversify from a tax perspective. While traditional IRAs and 401(k)s provide tax breaks on contributions, withdrawals in retirement are taxable.

Read at 24/7 Wall St.