Eligible recipients will have access to three accounts that will minimize their taxes in retirement.
Three Accounts Will Help Eligible Recipients in Minimizing Taxes in Retirement
Eligible recipients may access three accounts that will help them minimize their taxes in retirement as part of their retirement plan: the health savings account, Roth 401(k), and the Roth IRA will offer them different services and reliefs.
According to The Motley Fool, the three accounts will also guide eligible recipients to figure out how to manage their retirement money and taxes once they decide to retire from their jobs.
The eligible recipients are now encouraged to start investing in the three accounts as soon as possible to ensure they already have the right tools to minimize their taxes in retirement before they reach retirement age.
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More Details About the Three Accounts for Eligible Recipients
The health savings account will offer relief to eligible recipients as their healthcare expenses increase after retirement.
The eligible recipients will also access the Roth 401(k), which will help them withdraw their retirement money tax-free with a maximum contribution limit of $22,500 annually for those below 50 years old and $30,000 for 50 years old and above.
Meanwhile, the eligible recipients can take their money tax-free for life without any minimum distribution amounts through the Roth IRA account.
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