Yes, running a business can feel like an all-consuming process. From tracking inventory to training employees and working with customers, it’s hard to find time for much else. But you can’t lose sight of retirement planning. If you don’t plan strategically, you could pay extra them that hurt your bottom line. Don’t cut into your savings because of poor planning. Stay with us to learn what business owners need to know about taxes before retirement.
Watch for Social Security Taxes

Unfortunately, Social Security benefits aren’t always free from extra baggage. When your total income hits certain thresholds, you may need to pay on your benefits.
Aside from what you earn from your business, you may have investments through a brokerage account or income from properties. If you’re balancing a portfolio of income streams from multiple sources, that just increases the likelihood of needing to pay taxes.
While you may owe federal taxes on Social Security benefits, not all states will require you to pay. If you live in San Diego, for instance, make sure you understand the taxation of Social Security benefits in California. Fortunately, you won’t need to pay anything for Social Security in The Golden State, but other states will be different.
It pays to be wise with how you manage your income streams. Look for tax-exempt investment options or look into making withdrawals from a Roth IRA. Simple financial moves can translate to big tax savings.
Be Prepared for Capital Gains Taxes
Have you invested money in stocks, bonds, mutual funds, or real estate holdings? You may face capital gains if you sell them, especially if you’ve made a lot of money. How long you hold an asset matters, as well.
You may be pressed for time when you’re running a business. But take time to look over your investment portfolio as you’re approaching retirement.
You should be careful with timing and hold onto assets for at least a year to reduce your tax burden. Choose tax-advantaged accounts, too, to avoid incurring a tax on a sale.
Count on Taxes for Retirement Account Withdrawals
You won’t need to pay yearly on your IRA or retirement accounts when you’re adding money to them. But as soon as you hit retirement and start withdrawing money, you need to plan on paying taxes.
If you take out a lot of money, you may find yourself in a higher tax bracket, too. You’ll end up paying more in taxes, so it’s smart to be careful with your withdrawal plans. Aim to take out smaller amounts of money that won’t add up to a higher bill.

Plan Before Selling Your Business
When you’ve spent years growing your business, selling it to someone else can seem like the perfect way to start retirement. You’ll receive a substantial amount of money from your asset, but you may also need to pay a lot.
How much you’re taxed will hinge on whether you’re pursuing an asset or stock sale, and how long you’ve held the asset. Sometimes, opting for an installment sale can lower your tax burden since you won’t receive one large amount of money. Consult with a tax expert to craft a smart financial strategy.
Preparing for Retirement
Don’t let taxes derail what should be an enjoyable new chapter of your life. Know how retirement withdrawals and Social Security benefits will impact your tax burden. And watch for capital gains from selling your business.
With a savvy approach and some input from a tax expert, you can take action to shape a bright financial future in your golden years.

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