TAX TIP TUESDAY: Avoid Excess Taxes on Retirement Account Withdrawals

Once you hit age 59 1/2, you may be able to withdraw money from qualified tax-deferred retirement accounts without experiencing an early withdrawal penalty.

Why do that?

If you continue to wait to start taking money out of your retirement accounts, the balance may end up very high when you hit age 70 1/2. These higher balances = a higher annual taxable withdrawal amount.

To reduce future tax risk on your Social Security, manage annual disbursements from your retirement account(s) to be more tax efficient down the road.