Taxes: Pay Now vs. Pay Later

Which retirement lane would you like to travel?

In retirement, the tax rate you pay is somewhat optional. You can either “Pay Now” or “Pay More Later”.

Pay now is when you choose to pay the taxes on your retirement accounts at the current rates. This could be advantageous if future tax rates stay the same or increase significantly.

If you wait to pay your taxes on your retirement savings accounts you jeopardize your chance of running into tax risk with the uncertainty of taxes going forward.

The example below is a hypothetical example of a sample client age 60 converting $500,000 of their IRA in both the 25% & 32.5% tax brackets.

Corey Shevlin

Corey Shevlin

Corey serves as an investment adviser representative and handles the investment related administration for The Lynch Financial Group. He currently holds his Series 65, Life and Health Insurance licenses. He attended the University of Delaware and graduated with a Bachelor’s degree in Political Science and Criminal Justice in 2019.