Deferring Taxes Until Retirement? You May Want to Rethink That

If tax rates go up in the future (such as when provisions in the TCJA sunset), that could lead to a bigger tax hit, depending on the types of accounts you have.

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Conventional wisdom about putting money in qualified accounts (401(k), 403(b) and IRA are examples) for decades has been to defer your tax liability on those assets for as long as possible and get growth in those accounts unhindered by taxes. If you can wait and pay Uncle Sam later, why pay him now?

As the qualified accounts grow, so does the tax liability — along with the future pressure that required minimum distributions (RMDs) may cause related to where you end up in tax brackets and Medicare premium surcharges.

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Scott Noble, CPA/PFS
Co-Creator, Wealth With No Regrets®

Scott Noble of is focused on integrated retirement income, tax, investment, estate, charitable and protection planning. Scott also is a Certified Public Accountant (CPA) with Personal Financial Specialist credentials (PFS), which is a certification for providing extensive tax, estate, retirement, risk management and investment planning advice to individuals, families, executives and business owners.