Retirement often comes with relaxation, but it can also be riddled with financial questions. One of those questions might be figuring out when it’s time to start spending money from your Individual Retirement Account or IRA.
“A lot of times people delay it because maybe they have enough in Social Security or pension, and they think, ‘Oh, I don’t really need it yet.’ But, if you do that, if you delay, sometimes that can be a tax bomb just waiting to explode,” said Anna Christine, a partner with Golden Reserve, which is a Detroit area financial retirement planning firm.
Anna Christine warned about what she calls “tax traps”. First, she mentioned the Widow’s Penalty, and then the Kiddo’s Penalty.
Watch the video above to for her explanation.
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