When it is time to shift from being employed to a retiree, all of that saving that was done needs to come into play. There are some things to remember as your savings are now going to be the primary source, and way to generate, income.

Watch Your Retirement Withdrawal Tax Rates

Depending on how you have done your retirement savings, you are going to need to be careful about how you draw on them. If you are drawing from an account that is not tax deferred, it is very easy to bump yourself into a large income tax bracket that will cost you a large amount of the money you withdraw. As you take money out of accounts watch what income tax bracket you are going to be putting yourself into at the end of the year.

If you have used a Roth IRA, then you are free to withdraw whatever amount that you wish without being taxed. There are other things that you should consider when withdrawing from your retirement savings.

How Will Withdraws Affect Interest Income

One way to maximize the benefits of your retirement is to be able to use the interest it generates as your income. The more you withdraw, the less interest your accounts will generate. Make sure that your withdrawals are necessary and take into account what affect that it will have on the interest generated.

If you need legal assistance with retirement planning, contact Stano Law group.