With retirees suffering from low interest rates and rising expenses, the last thing they need is to pay more in taxes than absolutely necessary. Fortunately, by taking steps both during your career and after you retire, you can reduce your tax bill and keep more of your money to pay living expenses.
In the following video, Fool contributor Dan Caplinger discusses three ways to keep your taxes lower in retirement. Through judicious use of Roth IRAs, being smarter about using preferential tax rates on dividends, and taking care when you withdraw money from traditional tax-favored retirement accounts after you retire, you can avoid tax pitfalls and keep your overall taxes as low as possible. Dan discusses specifics of all of these strategies and notes some often-missed provisions that can help you cut your tax bill.
Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson and owns shares of General Electric and Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.