Summerlin Benefits Consulting Q&AAnswer
Nov 22, 2024 - 02:20 PM
In retirement, the loss of tax deductions can lead to higher taxable income for retirees. Without contributions to retirement accounts, childcare expenses, or mortgage interest, many retirees may find their deductions reduced. This is compounded if they start withdrawing from pre-tax accounts like IRAs or 401(k)s, which increases taxable income. Additionally, required minimum distributions (RMDs) at age 73 further push retirees into higher tax brackets. These factors combined can lead to a larger tax burden, especially as tax rates and brackets change in 2026.
