How to Generate Tax-Efficient Retirement Income

You know the importance of saving enough money for retirement so that you have readily available sources of funds to augment your guaranteed income from Social Security and any pensions. But did you also know that how you go about converting your assets into income can have significant tax implications?

Maximize Retirement Savings Flexibility

Developing a tax-aware withdrawal strategy starts with diversifying the various types of accounts you own. Ideally, you’d like to build a healthy mix of assets across taxable (savings and brokerage), tax-deferred (IRAs and 401(k) accounts), and tax-free accounts (Roth IRAs and Roth 401(k)s). This will allow you more flexibility in deciding how much income you should draw down each year and from which accounts to minimize your tax liability.

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