Many retirees worry about facing high taxes due to large retirement savings, particularly in traditional 401(k) accounts. Entering retirement with minimal savings poses its own risks, while having millions in a 401(k) raises concerns of being pushed into a higher tax bracket. A Roth account can offer benefits, such as tax-free withdrawals, but converting to a Roth may incur a sizable tax bill. With future tax rates uncertain, moving some savings into a Roth account could be a prudent strategy for reducing tax burdens in retirement.
Consider moving some savings into a Roth account to avoid higher taxes during retirement, as future tax rates are unpredictable.
Many retirees face high tax burdens, especially those with large 401(k) savings, necessitating strategies like Roth conversions to mitigate tax impacts.
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