Investment taxes .....before or after?

Many IRAs and personal corp plans give options for retirement plans.

I would like to know your opinion on this matter.

Do you believe taking taxes on retirement income before or after you collect?

If taken after retirement isn't it that the taxes rate will be much higher as well as the amount of income will be a large lump sum?

Or is it that collecting from each paycheck in smaller amounts thought may still come out to more taxes collected.

Need your thoughts and any enlightenment from a pro could really help, thanks

Generally speaking, the tax rate will be significantly less once you retire, as you will no longer be earning wages. If you take the money in a lump sum distribution, the entire amount will become taxable at your current rate.

If you want, you can roll the distribution from the plan into an IRA and then only pull out the amount you need, when you need it. This will allow you to maintain control over how much is taxable and when.

Also, if you use the distribution to buy a life annuity, you will be paid in installments, which will also limit the amount that becomes taxable each year.

A lot of people prefer to pay the taxes on their money when they retire because they figure their retirement income will be lower than their working income, so they'll be in a lower tax bracket. But if you think you'll be better off in retirement than now, pay the taxes now. Or do a little bit of both, like me. :)