You’ll be making decisions about when to file for Social Security benefits, of course, and how to maximize your pension. And you should be checking out your Medicare options before you turn 65.
Time to Get Serious about Tax Diversity
But it’s also a critical time to do something about the tax efficiency of your retirement plan. At age 59½, you’ll no longer have to deal with that intimidating 10% tax penalty when you withdraw money from tax-deferred retirement accounts. And you’ll still have years before those unpleasant required minimum distributions (RMDs) kick in at age 70½.
If you haven’t already done so, it’s a good time to get some tax diversity into your plan — and to better balance the amounts you have in tax-deferred, taxable and tax-free accounts. For many retirees and soon-to-be retirees, it should be a priority.
