Sharon Gross CPA

When planning for retirement, it's not just how much you save it's how you save. A tax-savvy retirement plan ensures you keep more of your hard-earned money and have greater flexibility in how you access your funds later in life. Choosing the right account types and withdrawal strategies can significantly reduce your lifetime tax liability.

One of the first steps is understanding the difference between traditional and Roth accounts. Contributions to traditional IRAs and 401(k)s are tax-deductible now, but withdrawals in retirement are taxed as income. Roth IRAs and Roth 401(k)s work the opposite way contributions are made with after-tax dollars, but withdrawals are tax-free if qualified. A diversified tax triangle approach that includes both types can give you more control over your taxable income in retirement.

It's also important to plan for required minimum distributions (RMDs), which begin at age 73 for most retirees. Strategic Roth conversions, charitable giving from IRAs, and delaying Social Security benefits are just a few ways to manage taxable income. Working with a CPA can help you create a custom withdrawal plan that balances income needs with tax efficiency, giving you peace of mind and financial freedom in retirement.