How Will Taxes Impact Me in Retirement?
By Chris Dixon, Oxford Advisory Group
A: Taxes could potentially affect significant amounts of your retirement income. Even after you stop working, withdrawals from IRAs, 401(k)s, and Social Security benefits may still be taxable — depending on how your assets are structured.
Understanding Taxable vs. Tax-Free Income
Not all retirement income is taxed the same way. Traditional IRAs, 401(k)s, and pensions are usually fully taxable. Roth IRAs and certain life insurance withdrawals can provide tax-free income. Structuring withdrawals from the right accounts each year may help you potentially keep more of what you’ve earned.
Why Florida Retirees Still Need Tax Planning
Even though Florida has no state income tax, federal taxes still apply to investment income and Social Security. At Oxford Advisory Group, we aim to help retirees in Lakeland, Jacksonville, Tampa, Orlando, and across Florida better manage taxes through coordinated income strategies and long-term planning.
The Value of Roth Conversions
Roth conversions can help diversify your tax exposure over time. Converting portions of pre-tax accounts into Roth accounts during lower-income years may better help reduce future required minimum distributions (RMDs).
Key Takeaway
A well-designed tax strategy can potentially help you keep more income over time. Tax planning doesn’t stop at retirement — it becomes even more important once you start drawing from your savings.
Tax-Free Investing Best Selling Book – Learn More
Speak to Oxford and get a complimentary informational run-down of your tax situation.
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