Liz Weston: Will you face a tax bomb in retirement?

By LIZ WESTON of NerdWallet

Good savers who take full advantage of their 401(k) plans and other tax-deductible retirement plans could be setting themselves up for unnecessarily high tax bills in retirement. This tax bomb could be set off because the retiree’s withdrawals will be taxable, and required minimum distributions could even force them into a new, higher tax bracket — and cause them to pay higher Medicare premiums to boot. Thankfully, there are ways to prepare before this happens. Younger savers should consider tax diversification strategies, and older ones may want to look into Roth conversions.