Getting Out of Paying Taxes in Retirement: Not So Easy

The headline of the article, 3 Ways to Legally Get Out of Paying Taxes in Retirement caught my eye, as I’m confident it caught the eye of others. Wouldn’t it be wonderful, at least from the taxpayer’s perspective, to live a tax-free retirement?Actually, the article focuses on federal income taxes, so it doesn’t even claim to give a roadmap for getting out of paying, for example, sales taxes or local real property taxes, while retired. Its recommendations probably do little to affect state and local income taxes.So are there ways to avoid paying federal income taxes in retirement? Of course there are. One way is to keep one’s income below the standard deduction amount. Another is one of the three techniques suggested by the article, that is, restrict one’s income to municipal bond interest. Of course, doing that is rather difficult. It means having enough wealth so that the interest generated by the bonds is sufficient to live the lifestyle…

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