Making Cents: What to know about the retirement tax torpedo
More than 4.1 million Americans are turning 65 this year.
As baby boomers head into retirement, that milestone comes with a potential tax hit that many may not be prepared for.
Financial adviser Kathryn McCall joined KCRA 3 to talk about what’s called a retirement tax torpedo.
She said that when someone’s income hits a certain level, more of their Social Security becomes taxable. Also, when someone hits a certain age, the government requires people to take out money from their retirement account, McCall said.
That’s where the tax torpedo can begin, she said.
Learn more in the video above.
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