Don’t Pay Tax Penalties on Money You Took From Retirement Accounts
Here’s a guide to avoiding unnecessary taxes on withdrawals made last year.
Retirement savers need to pay close attention to their income tax filings this year because of pandemic-related changes to rules for required withdrawals.
Even in normal times, the rules for mandatory minimum withdrawals can be confusing, and are even more so this year because of a mash-up of tax changes and virus relief programs. If you get things right, you can avoid paying unnecessary taxes, financial advisers say.
“The stakes are high,” said Cheryl Costa, a CERTIFIED FINANCIAL PLANNERTM professional near Boston.
The New York Times
By Ann Carrns
March 5, 2021
Cheryl Costa, CFP® is a CFP Board Brand Ambassador.