Team photo
Centuria Financial Group


David P. McCabe,


Financial Planner, Prudential Advisors


Jason M. Bowers,


Financial Planner, Prudential Advisors


Nathaniel D. High, RICP®

Financial Planner, Prudential Advisors


Nicholas Over

Financial Planner, Prudential Advisors


Hillary K. Walsh

Client Relations Manager, Prudential Advisors


Centuria Financial Group

2333 Baltimore Blvd Suite B

Finksburg, MD 21048


Phone:  443-952-7232

July/August 2022

Consider Taxes When Planning for Retirement

Consider Taxes When Planning for Retirement

When it comes to planning for retirement, there’s a lot to think about. How should you save for it? Where will the money come from? How much will you need for a comfortable lifestyle? But one important element that people often overlook is planning for taxes. Failing to take taxes into account can be an expensive mistake.

Your Tax Bracket
You may think you’ll be in a lower tax bracket once you’re retired, but that won’t necessarily be true. While you may no longer be earning a steady income from your job, your tax bracket may stay the same. Keep in mind that you may not have some tax deductions in the future that you may have now. These could include deductions for dependent children and retirement plan contributions, as well as the mortgage interest deduction once you’ve paid off your home.

Your Social Security Benefits
If you have income in retirement, up to 85% of your Social Security benefit may be taxable by the federal—and sometimes state—government. Other income might come from investments, retirement plan distributions, or a job.

Your Retirement Savings
Remember how the contributions to your company’s qualified retirement plan reduced your taxable income while you were working? Once you retire, it’s time to pay up. Withdrawals from 401(k) plans, traditional IRAs, and annuities are taxable as ordinary income.

A Tax Break from TIPS
Treasury Inflation-Protected Securities, or TIPS, provide protection against inflation and offer tax benefits. TIPS’ principal increases with inflation and decreases with deflation, as measured by the Consumer Price Index. When a TIPS matures, you’re paid the adjusted principal or the original principal, whichever is greater. Interest income and principal growth are exempt from state and local income taxes.

Tax Planning with a Roth IRA
Opening a Roth IRA can provide you with tax-free income when you retire. Although contributions to a Roth IRA are made with after-tax dollars, withdrawals of earnings generally are tax free after age 59½, if the account has been open for five years. Consult your financial professional, who understands the requirements regarding these investments.



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Life insurance is issued by The Prudential Insurance Company of America, Newark, NJ, and its affiliates. Centuria Financial Group is not affiliated with Prudential Financial. Centuria Financial Group sells insurance products of Prudential Financial's affiliated insurance companies in addition to products of non-affiliated insurance companies. Centuria Financial Group is authorized to sell and service certain insurance products of Prudential Financial companies as well as use this material. Centuria Financial Group and its representatives do not give tax or legal advice. Please consult with your own advisors regarding your particular situation. Offering financial planning and investment advisory services through Pruco Securities, LLC (Pruco), under the marketing name Prudential Financial Planning Services (PFPS), pursuant to separate client agreement. Offering insurance and securities products and services as a registered representative of Pruco, and an agent of issuing insurance companies. 1-800-778-2255. Prudential Advisors is a brand name of The Prudential Insurance Company of America and its subsidiaries. Hillary K. Walsh is employed by David McCabe and not The Prudential Insurance Company of America or its subsidiaries.
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