New York - If your income in retirement does not decreases, it is a good change that your tax bracket will not either. If you've saved substantially during your working years, you may actually be in the same or a higher tax bracket when you retire.
In order to calculate your exact tax bracket, you need to calculate what your known taxable income will be. This includes the following income:
Distributions relating to an IRA,
Corporate benefit plans
Dividends and interests
Compare your retirement income with your pre-retirement income and adjust your deductions accordingly.
Tax law and issues are every changing and is extremely complicated. Even if you always did your own taxes and plan on doing so when you retired, you should consulting with an independent Fee-Only financial adviser to ensure there are matters that you have not overlooked.
Founded in 1998, The Independent Adviser Corporation has assisted thousands of individuals, families, and businesses. We are 100% independent and objective and offer free private consultations to our clients. Our company publishes free investment research and educational materials, and when specific financial or legal advice is needed, we connect clients with a network of FEE-ONLY professionals. For more information, become a member or to schedule a free consultation, please visit our website at TheAdviser.com or 1800ADVISER.COM.