We spend a lot of time and effort accumulating a retirement fund. But at a time when retirement can last for over 20 years, we also need a tax-efficient withdrawal strategy to help our nest egg last longer.

Various types of retirement income are taxed at different rates. Here's a look at the different types of income and their respective tax rates in retirement:

Ordinary income tax rate. Once you retire, you won't have a regular paycheck anymore and your ordinary income tax will decrease significantly. But you'll still probably have to pay tax on these sources of income:

--Rental income

--Business income

--Tax-deferred account withdrawals from traditional IRAs and 401(k)s

--Interest

--Short term capital gains (gain from sales of assets held under 1 year)

--Annuity payouts may be taxable

--A portion of your Social Security benefit may be taxed federally depending on your income

See the original post here:
How to Take Tax-Efficient Retirement Account Withdrawals