4 Tax Strategies for High Earners Nearing Retirement

As retirement nears, proactive tax planning can make the difference between keeping more of your wealth or losing it to taxes.

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After spending decades on the grind and saving, you’re almost at the finish line. You can see yourself enjoying sunny days on the beach, on your boat, or doing whatever you want to do in your ideal golden years.

But if you’re not careful, especially if you’re a high earner, your retirement savings could take a serious hit from Uncle Sam. So it’s important to prepare now. Today, we'll take a look at a few different tax strategies you can engage in today.

Continue to Maximize Pretax Accounts

If you’re a high earner, you’re probably taking advantage of the high retirement plan contribution maximums. And you should continue to do so, especially if you have pretax accounts like traditional 401(k)s or traditional individual retirement accounts (IRAs). This is because contributions or deferrals could reduce your taxable income and thereby your tax bill.