Tax rate for retirees

     

  According to ATRA, there’s a new 39.6% tax bracket for single taxpayers with taxable income over $400,000 and married taxpayers filing jointly with taxable income over $450,000. Plus, for taxpayers in the new 39.6% tax bracket, capital gains and qualified dividends might be taxed at 20%, up from 15% in 2012. Itemized deductions are phased out for single taxpayers with adjusted gross income of more than $250,000 and married couples with adjusted gross income of more than $300,000. And the deduction for personal exemptions was reduced or eliminated for certain high-income taxpayers.

Given the new top tax rates for capital gains, dividends and other income, what are the best strategies now for saving for retirement and drawing down assets in retirement? In this edition of Retirement Adviser, MarketWatch’s Robert Powell spoke with three tax experts about retirement planning in the wake of the new tax law.