Many retirees don't think about taxes until it's time to withdraw funds from a pretax account, which can be a costly mistake, financial experts say.
Only 3 in 10 Americans have a plan to reduce taxes on retirement savings, according to a Northwestern Mutual study from January that polled roughly 4,600 U.S. adults.
However, the "bucket strategy" is one way to minimize that burden, according to certified financial planner Sean Lovison, founder of Purpose Built Financial Services in the Philadelphia metro area.
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Roth conversions transfer pretax or nondeductible IRA money to a Roth IRA, which won't incur levies on future withdrawals.
Persons:
Sean Lovison, Trump, Lovison, Roth
Organizations:
Northwestern Mutual, Finance, Roth IRA
Locations:
Philadelphia