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Travis Woods

The 401(k) Trap: How Retirees With High Savings Are Getting Hit With a Surprise Tax — and How To Avoid It

DNY59 / Getty Images/iStockphoto

Ever since the 401(k) option was added to the American tax code in 1978, the employer-sponsored retirement savings plan has been a foundational element of any smart investment portfolio and a crucial financial safety net for most retirees’ golden years.

However, some retirees are discovering that a robust 401(k) balance can actually cost them money — specifically, higher taxes on Social Security benefits. Read on to learn more.

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