Many retirees unaware of tax impacts on retirement income, study finds

news.yahoo.com February 3, 2025, 09:00 PM UTC

A study by the Nationwide Retirement Institute found that 37% of retirees do not understand how taxes affect their retirement income. Financial expert Nick Holeman discussed important tax strategies for retirement savings. Holeman noted that accounts like IRAs and health savings accounts can significantly reduce tax bills. He also described Social Security benefits as tax-efficient, with only 85% subject to taxation. He advised retirees to delay claiming Social Security to increase benefits and suggested setting up tax withholding for these benefits. Holeman recommended a "bracket filling" strategy for managing withdrawals from retirement accounts.


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