The Tax Trap in Retirement Savings: A Warning and a Way Out The looming specter of long term capital gains taxes has become an uncomfortable truth for many Americans planning for retirement.
Simply putting money into a 401(k) may not be enough to ensure a comfortable retirement, as financial planners like Aditi Javeri Gokhale at Northwestern Mutual point out.
When retirees withdraw their savings, they often face a tax bill of up to 30% – a staggering blow to nest eggs accumulated over decades. For many, this revelation comes too late.