Chapter 23

Retirement Distribution Planning

Introduction

Throughout people’s working careers, they make periodic contributions into their retirement accounts. At some point, they will retire and need to withdraw money. Retirees need to understand the potential tax implications of this process. They also need to understand a few special rules that could save taxes over the long term.

The American government permits tax-deductible contributions under certain plan types. This is done to encourage the participants to save so that they are not solely reliant upon Social Security for their retirement well-being. However, the government does want to eventually generate taxable income for retirees so that they limit the length of the tax deferral period. ...

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