When it comes to withholding taxes in retirement, the author of today’s article advises that you want to withhold just the right amount: over-withhold and you miss out on earned interest; under-withhold and you risk getting hit with a penalty tax by the IRS. However, despite the importance of getting your withholding as close as possible to your actual tax liability, the author notes that “Many upcoming retirees aren’t quite sure how taxes in retirement are calculated.” As such, they outline some sample calculations showing how to calculate your tax withholding in retirement. CLICK HERE.
