The Single Most Common Retirement Planning Mistake People Make in Their 60s

Core Insights - Over 50% of current retirees did not account for taxes in their retirement planning, and nearly 60% wish they had prepared better for retirement taxes [2] Tax Considerations in Retirement - Taxes on retirement account withdrawals depend on the type of account; Roth account withdrawals are generally tax-free, while 401(k) and traditional IRA withdrawals are subject to income taxes [4] - Some states have exceptions for retirement income or do not tax income at all, so it is important to check state tax codes for potential exemptions [5] - Social Security benefits may also be subject to state and federal income taxes; 41 states do not tax these benefits, but federal taxes depend on provisional income thresholds [6][7] Planning for Retirement Taxes - Many retirees regret not planning for taxes on retirement income, highlighting the importance of understanding potential tax liabilities [8] - Proper planning can alleviate confusion regarding taxes, allowing retirees to enter retirement more prepared [9]