Federal Taxes Take a Big Bite Out of Retirement Income

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Retirees often forget how big of a tax bite federal taxes can be during retirement. Traditionally, taxable accounts are accessed first, followed by tax-deferred accounts and then Roth IRAs. As more clients self-fund their retirements, large IRA balances can result in rather hefty required minimum distributions after age 70 1/2.   An understanding of the taxability of various retirement income sources can be found in this article.

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