"Maximizing Tax Efficiency in Retirement Planning"

Retirees should carefully consider their tax strategy, as decisions regarding 401(k) withdrawals, Social Security benefits, and timing can have significant tax implications. Consulting a tax professional before making these decisions is advised to avoid surprises and potentially save on tax dollars. Withdrawing large amounts from retirement accounts or taking Social Security benefits early could result in increased taxes or penalties, while making catch-up contributions to IRAs may help increase retirement benefits and decrease taxable income for 2023.