The Retirement Tax Mistake That Could Cost You More Later

The tax advice that helped you build wealth during your career may not be the same tax advice you should follow in retirement. For many people, the traditional approach is simple: reduce taxes today and defer taxes as long as possible. That can make sense during your working years, especially when contributing to pre-tax retirement accounts like a 401(k). But once you retire, your income changes, your tax picture changes, and your strategy may need to change too. In this video, Bobby Hapanowicz explains why continuing to defer taxes in retirement can sometimes create larger required minimum distributions, higher taxable income later in life, and potentially more lifetime taxes than necessary. 🔍 In this video, we cover: ◽ Why tax deferral is often helpful during your working years. ◽ Why the same advice can work against you in retirement. ◽ How retirement income sources change after you stop working. ◽ Why early retirement years may create lower tax brackets. ◽ How large IRA balances can lead to bigger RMDs later. ◽ Why required minimum distributions can increase taxable income. ◽ How Roth conversions may help reduce future tax pressure. ◽ Why taking some IRA income earlier may reduce future RMDs. ◽ The difference between reducing taxes today and reducing lifetime taxes. ◽ Why Social Security, IRA withdrawals, brokerage income, and tax strategy should be coordinated. ◽ Why your financial advisor and CPA should be working together. ◽ How comprehensive retirement planning can help align tax, income, and investment decisions. The key takeaway: retirement tax planning is not just about paying the least amount in taxes this year. It is about building a strategy that may help reduce total lifetime taxes and improve the efficiency of your retirement income plan. 📞 Work With Hapanowicz & Associates Get personalized guidance from a financial advisor: 👉 https://www.hapfinancial.com/intro 🔖 #RetirementTaxPlanning #rothconversions #financialplanning ---------------------------------------------------------------------------------------------------------------------------------------------------------- 🛑 Legal Disclosure: Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Hapanowicz & Associates, a registered investment advisor and separate entity from LPL Financial. The financial professionals associated with Hapanowicz & Associates Financial Services Inc. or LPL Financial may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state. Third-party commentary in this video reflects the views of the speaker and has not been reviewed for accuracy or completeness by LPL Financial.