Reported 8 months ago
Retirement account withdrawals can impact your tax bracket, as different types of accounts have varying tax implications. Withdrawals from post-tax accounts like Roth IRAs are tax-free, while withdrawals from pre-tax accounts like traditional 401(k)s are taxed as ordinary income. This affects your taxable earnings and ultimately determines your tax bracket, making it crucial to plan withdrawals strategically for a tax-efficient retirement strategy.
Source: YAHOO