Six ways to maximize retirement ‘sweet spot’ years

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During your working years, it is usual to focus more on gaining an immediate deduction for retirement account contributions than on how future withdrawals will be taxed. Financial advisers say that as a result, affluent people often retire with a portfolio of huge tax-deferred IRAs and 401(k) accounts — and belatedly realize they must tap the accounts for substantially more than living expenses to cover annual taxes on their withdrawals.

But there is a “sweet spot” — between the ages of 59½ and 70½ — when withdrawals from tax-deferred accounts are penalty-free, but not yet required. Advisers say those 11 years are the ideal time to protect yourself by moving some money into taxable and tax-free accounts instead of continuing to plow it into tax-deferred accounts.

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