In retirement, your taxable income comes from Social Security (up to 85% may be taxable), retirement account withdrawals (fully taxable from traditional accounts), investment income, and any part-time earnings. Managing which bracket you're in each year, through strategic withdrawals and Roth conversions, can save tens of thousands over your retirement.
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Where the tax savings hide
Not paying more than you owe.
Illinois exempts Social Security, IRA distributions, and pensions from state income tax. Federal Roth conversions, QCDs, and bracket management compound those savings over a 25-year retirement.
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