Tax season has a way of making retirement feel far away — even if it’s closer than you think.

But the choices you make now can have a real impact later. Understanding how different accounts are taxed, when withdrawals happen, and where flexibility exists can help you keep more of what you’ve worked hard to save.

Here’s a straightforward look at a few retirement and tax-planning concepts worth knowing.

IRAs and Taxes: What’s the Difference?

Individual Retirement Accounts (IRAs) are one of the most common tools for retirement savings. How they’re taxed depends on the type.

  • Traditional IRAs may offer a tax deduction today, but withdrawals in retirement are generally taxed as income.
  • Roth IRAs are funded with after-tax dollars, but qualified withdrawals in retirement are typically tax-free.

Neither option is universally better. The right fit often depends on your current income, your expected income later, and the level of flexibility you want in retirement.

Inherited IRAs: Special Rules Apply

If you inherit an IRA, the tax rules can change significantly.

Many non-spouse beneficiaries are required to withdraw the full balance within a set time frame. How and when those withdrawals happen can affect your tax bill, especially if they’re added on top of regular income.

Because the rules can be complex, it’s worth slowing down before making decisions that can’t be undone.

Tax-Loss Harvesting: Turning Market Losses into Tax Opportunities

Tax-loss harvesting involves selling investments at a loss to help offset capital gains or taxable income.

It doesn’t eliminate losses, but it can help reduce taxes in certain situations. This strategy isn’t for everyone, and timing matters, but it’s one example of how taxes and investing often work best when considered together.

Retirement Withdrawals: Order Matters

In retirement, where you pull money from first can affect how long your savings last and how much you pay in taxes.

A thoughtful withdrawal strategy may involve balancing:

  • Taxable accounts
  • Tax-deferred accounts like Traditional IRAs
  • Tax-free accounts like Roth IRAs

The goal isn’t just income — it’s managing taxes over time, not just year to year.

HSAs: More Than a Health Account

Health Savings Accounts (HSAs) are often overlooked in retirement planning.

Used strategically, HSAs can offer:

  • Tax-deductible contributions
  • Tax-free growth
  • Tax-free withdrawals for qualified medical expenses

For some people, an HSA becomes a flexible way to help cover healthcare costs in retirement.

Looking Ahead

Tax planning isn’t about finding loopholes or chasing perfect timing. It’s about understanding your options and making informed choices, one step at a time.

If retirement is part of your picture — near or far — having a clear view of how taxes fit in can make the road ahead feel a lot more manageable. Meeting with a Wealth Advisor can help you talk through your options, ask questions, and make decisions with more confidence.

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