As Washington inches closer to the largest overhaul of the U.S. tax code in nearly 30 years, retirees with large sums saved in 401(k) plans or IRAs may be feeling nervous about their money.
"Often they want a crystal ball to know what tax rates will be in the future," said Darnel Bentz, a senior wealth advisor with Kayne Anderson Rudnick in Los Angeles.
Unfortunately, unless you've got a DeLorean time machine sitting in the garage, there is no way to know when the changes will happen.
"Generally, retirement questions focus on 401(k)s and IRAs since that is a big taxable pool of money," said Jose Reynoso, managing director at Clarfeld Financial Advisors.
"Clients want to know what to do with it, how to avoid paying taxes on it."
The good news is that under the current system, retirees do have several valuable tax breaks at their disposal.