Nickname: Pedalon

Review: Candide is so right. I shifted my savings to an ordinary brokerage account once I realized my military pension, IRA/Roth savings, and military 401K would probably put me in a higher tax bracket. I also assume taxes will increase to pay off Social Security IOUs and Medicare. I've decided to pay the taxes now at a lower rate.

Date reviewed: Apr 30, 2006 6:55 AM

Nickname: candide

Review: It would be great to have people warned that IRA's may cause them tax increases when they retire. I found my income higher after I retired, owing to inheritances, pensions, and social security. IRA proceeds are taxed at the full rate and if you are making more at a higher rate. Ordinary investments may be taxed at a lower rate owing to the reduced dividend and capital gain rates. But the main thing is that you might be making more taxable income after retirement than before.

Date reviewed: Mar 10, 2006 4:32 PM