3 Tax Myths Retirees Fall For (And How You Could Avoid Them)

Video Disclaimer
Any references to protection benefit or lifetime income generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims paying ability of the issuing insurance company .An annuity is intended to be a long-term, tax-deferred retirement vehicle. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59½, may be subject to a 10% federal tax penalty. If the annuity will fund an IRA or other tax qualified plan, the tax deferral feature offers no additional value. Qualified distributions from a Roth IRA are generally excluded from gross income, but taxes and penalties may apply to non-qualified distributions. Consult a tax advisor for specific information. This is not a recommendation to surrender or otherwise purchase an insurance product. You should review your specific policy and financial situation with your advisor.
Did you ever assume taxes automatically go down once you stop working? On this week’s Ascend360™ Insider, Bill Smith, RICP®, MRFC®, CEO and Founder of W.A. Smith Financial Group, explains why that belief can be a costly misunderstanding. Find out the three biggest tax myths retirees fall for—and how understanding them could help you keep more control over your retirement income.
