fool.com·Apr 19, 2026
Many retirees are surprised by the amount of their income that goes to taxes, particularly from taxable Social Security benefits and withdrawals from traditional IRAs or 401(k)s, which can increase due to required minimum distributions.
Consider incorporating Roth IRA conversions into your financial strategy before retirement to manage taxes effectively. By converting a portion of your traditional IRA or 401(k) to a Roth IRA, you can potentially reduce taxable income during retirement and mitigate the impact of required minimum distributions (RMDs) on your tax bill.