8 Life Events That Can Change Your Tax Situation

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6. Your retirement contributions and distributions

If you are contributing to a tax-advantage account (for example a 401K plan or individual retirement account), it can actually get you rewarding tax deductions. It’s quite simple: the more you put in that account the better.

However, once you start taking advantage of the money you have in that account, you should definitely expect to be taxed on that distribution.

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