I’m preparing to sleep the day away in my cozy doghouse instead of working all the time.  But I like my comfort, my kibbles and bits and my warm doggy beds.  Do I have enough bones stockpiled to avoid tough times ahead?  How do I go about sniffing out the best ways to save a lot for my golden age? Will I face hefty taxes if I opt to bury a little extra each week now, so that I have plenty saved up for emergencies later on?  It’s time to go over my retirement package to make sure that I minimize associated tax obligations while maximizing my assets.

First up, my Individual Retirement Accounts, or my IRAs.  An IRA is an account that a taxpayer or a small business owner can set up with a financial institution to save money for retirement.  There are several different kinds of IRAs, and I own several of them.  It’s where I stash away my mutual funds, stocks, and bonds.

Each type of IRA has its own rules to follow, including who can establish an IRA, where it can be established, who can contribute, how much can be contributed each year, and so on.

Treats coming with IRAs?  Interest, dividends, and capital gains accumulate without tax penalties.

Also, a good doggy – that’s me – can escape taxes either on the initial IRA contributions or on the withdrawals during retirement – exactly when I get  taxed on the IRA depends on whether I’ve  buried funds in a traditional IRA or hidden them away in a Roth account.

My chore is to make sure that I’m taking advantage of all possible tax breaks.  That means I have to choose wisely when it comes to the type of IRA I own and the amounts I contribute and withdraw.

When it comes to such important things, I like to sit and pay attention to The Boss. She knows a lot about the effects retirement plans have on my taxes.  Our appointment’s on the calendar.  Next week at this time I’ll know if I’ll be chowing down on steak or crunching bone-dry nutrition in my golden years