Maximizing Retirement Income | Russell Investments

There are a few different ways that you can maximize the amount of money that you will make during your retirement. However, you should also remember that any money you withdraw from your retirement fund will be taxed and also subject to 20% withholding. A great way to maximize your income during retirement is to roll it over into an IRA. You also can cash out some of your taxable investments first which will help them continue to gain value over time.

Key Takeaways:

• Make sure that you understand any time you take money out of your retirement plan, it will be taxed the same year that you take it out.
• You can roll over some of your money into an IRA or a different plan if you prefer that compared to taking it for income purposes.
• Make sure that you understand that any tax-deferred investments have to be claimed as income. Also cash out your taxable investments first.

“You can request a direct trustee-to-trustee transfer from the old to the new account.”

Read more: https://russellinvestments.com/us/resources/individuals/planning-for-your-goals/nearing-retirement/tax-strategies-for-retirement-income