First, take the time to do the necessary tax planning to avoid the following retirement income tax mistakes that can drastically reduce your financial security as you age. Ignoring these retirement tax mistakes could lead to both paying more in taxes and running out of money earlier than necessary. The Six Retirement Tax Planning Mistakes That Could Kill Financial SecurityTax Planning can help your have a happier retirement. Those who do end up paying fewer taxes in retirement often do so by simply having a smaller retirement income, which is not likely the dream retirement. Retirement Tax Mistake #3: Not Contributing to Roth IRAs and Roth 401(k)s While EligibleThe contribution limit for a Roth IRA is just $6,000, per year, in 2020.

Source: Forbes August 23, 2020 12:56 UTC