Tax season has officially started and if you’re an early bird looking ahead to April, you might have already started filing your 2018 taxes. Regardless where you are in the process, here are a few tips to keep in mind for tax season this year.
Taxes in retirement are not exactly the same as when you’re working, but you will find some similarities. In retirement you are taxed on income the same way as you are during your working years, but because you will have several types of income (if you balance your portfolio), your taxes can work in a few different ways.
For fixed indexed annuities (FIAs), your growth is tax-deferred which means you can grow your income based on your policy to secure a higher payout. Once you start to receive a payout, it will be taxed as ordinary income. The tax deferral period can have a dramatic impact on the growth of your FIA. Use our tax advantage calculator to compare the tax savings of an annuity to other types of retirement products.
No matter if you are retired, nearing retirement, or still working full-time, here are three benefits to filing your taxes well before the deadline.
While April may seem far away, taking steps now to get yourself organized for the year and knowing what to expect in retirement can pay off throughout 2019 and beyond.
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