Did you know that several tax credits, deductions, and rules hinge on your age? For instance, age might determine how much you can deduct on your federal tax return for long-term care insurance premiums. In other cases, your age dictates when you must begin complying with specific rules that affect your tax liability, such as taking required minimum distributions (RMDs). And, for those age 50 and older, specific catch-up contribution rules can impact your retirement savings strategy.
Knowing which tax regulations and benefits link to which ages can aid in tax planning and potentially reduce your tax burden before and during retirement.
