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4 Costly Government Penalties Retirees Should Avoid

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Retirees facing the challenge of making their nest eggs last as long as they do are often surprised by the devastating impact that taxes can have on their cash flow. Although many people welcome the upfront tax breaks of contributing to traditional IRAs and 401(k) plans during their working years, they're not so thrilled when Uncle Sam demands his cut when they start tapping those retirement accounts.

But income taxes aren't the only way in which the government can chip away at your life savings in retirement or limit your anticipated benefits. Beware costly penalties or disincentives for acting too soon or too late or simply accumulating too much money. Take a look.

SEE ALSO: 7 Steps to a Happy Retirement

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