Even carefully prepared retirement budgets can be upended by expenses that rarely appear in standard monthly calculations. Retirement expenses can include overlooked taxes, health care, home repairs and family assistance. Planning for irregular costs and keeping accessible reserves can reduce financial surprises.
The relevant rules can depend on age, income, filing status and the type of account or benefit involved. Decisions that look attractive in one tax year may create costs in another. A separate reserve for irregular expenses can protect the retirement plan from predictable surprises.
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