Tips to Reduce Insome Tax After Retirement
- If all your money is in retirement plans:
- Most of your income will be taxable, hence be careful about understanding the tax deductions you qualify for.
- Be careful about your income tax bracket. If your planned withdrawals from your IRAs put you in a higher tax bracket, look for ways to avoid using the IRAs. Use credit cards towards the end of the year, but always ensure you pay that off within 60 days.
- If you have money inside and outside retirement plans:
- If you have money outside your retirement account, you will be able to reduce your taxes by withdrawing in the initial phase of your retirement from your non retirement account. Non retirement funds are subject to lesser taxes.
So sensibly speaking, you need to withdraw from non-retirement funds first. Using this strategy, you can bring down your income tax considerably lower. But if you come to the end of the year and realize you have zero taxes to pay or come under the category of low tax bracket, then take advantage of that by withdrawing from your retirement account and to have it taxed at the lowest rate.
If you have income outside retirement fund and you are in low income tax bracket, consider converting your traditional Individual Retirement Agreements (IRAs) into Roth IRAs and use the retirement money to pay the income taxes.
But like we said, it's sensible to start planning your retirement fund as early as possible. HDFC Life has a lot of smart plans to help you plan your retirement as per your requirement.
- Income Tax Return Guide - Details You Should Know
- How to File Income Tax Return
- How to Save Income Tax in India?
- Guide to Income Tax Rebate
- Section 80 - Best Tax Saving Investment option and its Impact on Income Tax
- A Step-by-Step guide on How to Pay Income Tax Online
Income Tax Slab 2021-22
February 17, 2020
Income Tax Return Guide - Details You Should Know
November 07, 2016
Best Tax Saving Investment Options in 2022 (FY 2022-2023)
November 08, 2016
Subscribe to get the latest articles directly in your inbox
14 Best Investment Options In India
October 30, 2018
Short Term Investments: Top 11 Short Term Investment Options For 2022
November 08, 2016
Insurance vs Investment - Did You Get the Right Financial Plan?
November 05, 2018
Popular & Recent Articles
How to Plan for Retirement as Per your Age
"The thumb rule for retirement planning is - the earlier you start, the more you save. However, with age, your priorities change too. So, you need to factor in the cost of living in the present vis- a -vis future."
HDFC Life Insurance Company Limited. CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101.
Registered Office: Lodha Excelus, 13th Floor, Apollo Mills Compound, N.M. Joshi Marg, Mahalaxmi, Mumbai 400 011. Email: [email protected], Tel No: 1800-266-9777 (10 am to 7 pm). The name/letters “HDFC” in the name/logo of the company belongs to Housing Development Finance Corporation Limited (“HDFC Limited”) and is used by HDFC Life under an agreement entered into with HDFC Limited.
For more details on risk factors, associated terms and conditions and exclusions please read sales brochure carefully before concluding a sale.
|BEWARE OF SPURIOUS PHONE CALLS AND FICTIOUS/FRAUDULENT OFFERS
- term insurance plan
- savings plan
- ulip plan
- retirement plans
- health plans
- child insurance plans
- group insurance plans
- long term savings plan
- fixed maturity plan
- monthly income advantage plan
- income tax calculator
- pension calculator
- bmi calculator
- compound interest calculator
- term insurance calculator
- income tax
- tax saving investment options
- best investment plans
- benefits of term insurance calculator
- what is term insurance
- why to invest in life insurance
- tax planning for salaried employees
- how to choose best child insurance plan
- tips for buying retirement plan
- 1 crore term insurance
- importance of saving
- short term saving plans
- types of investment in india
- investment declaration