When you claim Social Security, up to 50% to 85% of your benefit is taxable, depending on your overall income level. You may find that the combination of Social Security benefits, withdrawals from tax-deferred IRAs and other sources of income results in a tax bill higher than you anticipated.
The years leading up to retirement are some of the best times to get a handle on what your post-retirement tax picture will look like. After all, it isn’t how much income you’re getting in retirement that’s important — what’s important is how much of that income you keep to fund your lifestyle and other retirement goals.
