Also, while I don’t know exactly what my tax rate will be in retirement, what I do know is that my tax burden is pretty significant right now. And so it makes sense for me to shield some of my income from the IRS by getting a tax break on my retirement plan contributions. Once I’m retired, those costs shouldn’t apply, and so I shouldn’t need to earn as much. And if I work a lot less, or not at all, then I might have a much lower annual income and tax rate — even if I take a decent chunk of money out of my retirement plan each year.
Source theeagle.com But I’m not sure my tax rate will be higher in retirement than it is today. Right now, I put in many, many hours a week at my job because I have to keep up with my mortgage payments, cover a host of child care expenses, and sock funds away for my kids’ education.
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