Tax planning

People looking to retire but wanting to keep a part-time gig will benefit from a new law that gives a 20% deduction for “pass-through entities.”

Employees should look into filing for Social Security as soon as they retire to generate extra income and allow their spouse to delay and grow their retirement benefit.

Sometimes the strategy can eliminate a domino effect of other expensive tax problems down the road, Ed Slott writes.

Employees may expect a lower tax liability because of the new rates under the new tax law, especially those who were in the 25% bracket under the old law.

Employees should consider limiting their traditional 401(k) savings, as the plans provide taxable distributions that can boost their tax bill in retirement

Taxation of retirement plan distributions and Social Security benefits remains unchanged under the new tax law, but retirees are likely to see an increase in after-tax income.

Workers who are looking for new investments may want to invest in small-cap dividend payers,

As long as their earnings won't exceed the limit set by the Social Security Administration, they will not lose their benefits.

Retirees who consider taking withdrawals from their 401(k) and other similar plans should account for the tax impact before making a decision.

Workers have an option to stash their bonus in their 401(k), but doing it may not be a good idea.