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Taxes

Retirement income can be subject to taxes depending on the specific type of retirement account or benefit you receive and your tax bracket. Here are a few examples of common types of retirement income and how they may be taxed:

1. Social Security benefits: Social Security benefits are generally taxable if you have other substantial income in addition to your benefits. The amount of tax you pay on your benefits depends on your taxable income and tax filing status.

2. Traditional Individual Retirement Account (IRA) and 401(k) withdrawals: Withdrawals from traditional IRAs and 401(k)s are generally taxed as ordinary income at your current tax rate.

3. Roth IRA withdrawals: Withdrawals from Roth IRAs are generally tax-free if you are over the age of 59 1/2 and you have held the account for at least five years.

Showing 50 results of 1219

Inbox Questions | Reducing Taxes and Managing RMDs

In this episode, we tackle Kay's questions about managing her IRA and Roth accounts in retirement. With significant assets, no LTC insurance, and children in differing financial circumstances, Kay wan...

sites.libsyn.com Jan 16 2025
Quarterly tax payments in retirement?

Quarterly tax payments in retirement?

This year my wife will retire from her job of 28 years. I will continue to work, likely until December 2025. To replace her income, we will start using dividends coming out of an IRA, probably in the ...

reddit.com Jan 15 2025
Retirement Spending Is Ridiculously Tax Advantaged

Retirement Spending Is Ridiculously Tax Advantaged

It can be pretty amazing how much income one can have in retirement while paying very little tax at all. Here are 16 examples. The post Retirement Spending Is Ridiculously Tax Advantaged appeared firs...

whitecoatinvestor.com Jan 15 2025
Do you need to make estimated tax payments in 2024?

Do you need to make estimated tax payments in 2024?

If you receive income such as interest, dividends, alimony, self-employment income, capital gains, or prizes, you may have to make what the IRS terms “estimated tax payments.”...

empower.com Jan 14 2025
Tax Credits That Should Be On Your Radar

Tax Credits That Should Be On Your Radar

I recently received an email from a reader asking me about the Earned Income Tax Credit. It made me realize, I’ve written little about tax credits. This is an important topic that early retirees...

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Inbox Questions | When Should You Stop Using TurboTax?

Today, we tackle a question many retirees face: Can you manage your taxes with DIY software like TurboTax, or is it time to bring in a professional? We'll explore the challenges of navigating tax comp...

sites.libsyn.com Jan 03 2025

Promise to Eliminate Income Tax on Social Security

I'm reaching out to encourage everyone to contact their representatives and support President Trump's proposal to eliminate income taxes on Social Security benefits. Here's why this matters: Key Point...

community.aarp.org Jan 02 2025

Defusing a Future Tax Bomb With Roth Conversions - 510

Does it make sense for Alex and his wife in Massachusetts to do Roth conversions now to the top of their eventual tax bracket? Steve in San Diego got serious about saving for retirement after Joe and ...

purefinancial.com Dec 31 2024
The Countdown to Tax Increases

The Countdown to Tax Increases

The Trump tax cuts are set to expire at the end of next year. And when they do expire, it means nearly everyone – including you – will be paying…...

bossretirement.com Dec 28 2024

Efficient Retirement Tax Planning with Jeremy Green (Ep. 8)

Are you ready to simplify the complexities of high-net-worth tax planning and maximize your retirement savings? Today, we unveil key strategies with our expert guest, Jeremy Green. In this Retirement&...

bossretirement.com Dec 28 2024
Closing the Financial Door on 2024

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Wrap up 2024 with these essential tasks, tax tips, and investment insights from a seasoned FAANG FIRE pro. Get ready for 2025 with smarter, more strategic finances....

faangfire.com Dec 22 2024
Retirement Tax Planning Calculator

Retirement Tax Planning Calculator

My wife and I (61 & 58) have several retirement accounts: Trad 401(k), Trad IRAs, Roth IRA, I-Bonds, and taxable brokerage. We will both have pretty good SS income as well. Planning to retire in 2...

reddit.com Dec 21 2024
Do As I Say, Not As I Did

Do As I Say, Not As I Did

What do Arnold Schwarzenegger going vegan, the U.S. advocating for lower carbon emissions, and Warren Buffett calling for higher capital gains taxes all have in common? They are all examples of what I...

ofdollarsanddata.com Dec 20 2024
What retirees need to know about tax brackets for 2025

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Those at or near retirement need to account for slightly higher tax brackets, as well as higher Basic Personal Amount and OAS clawback thresholds, among other changes for 2025. The post What retirees ...

moneysense.ca Dec 19 2024
Do You Need to File a Tax Return This Year?

Do You Need to File a Tax Return This Year?

Depending on your income and other factors, you many not need to file a tax return. However, in some cases you may want to file anyhow. The post Do You Need to File a Tax Return This Year? appeared fi...

financialducksinarow.com Dec 16 2024

40th anniversary of the social security tax.

It’s been 40 years since the social security tax was imposed back in 1984. And the AARP has done nothing to repeal that tax. That seems like it should have been a year after year priority with e...

community.aarp.org Dec 16 2024
Retirement planning is more than tax planning

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Let me be super clear about 2 things up front: I (68, retired) am very fortunate to have enough saved and invested for my retirement, including maxing my 401k and IRA over 40 years and paying off my h...

reddit.com Dec 15 2024
The Kiddie Tax

The Kiddie Tax

Here's what you need to know about the kiddie tax, how to figure out how much it'll cost, and whether it's required for you to pay. The post The Kiddie Tax appeared first on The White Coat Investor - ...

whitecoatinvestor.com Dec 14 2024
Estimating Your 2024 Tax Bill

Estimating Your 2024 Tax Bill

I was annoyed that the online calculator I previously used to estimate my taxes wasn’t updated for 2024 tax data. So I decided to just build one myself. I wanted it to be simple and quickly answ...

faangfire.com Dec 12 2024
The 3 Tax Mistakes That Could Cost You Thousands

The 3 Tax Mistakes That Could Cost You Thousands

Hey FAANG FIRE! I just returned from 7 days in Oahu, Hawaii. All contributing towards my goal of increasing spend on vacation that I mentioned in my last post where I outlined my current spending. We ...

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9 Answers to Boost Tax-Free Roth Retirement Income - 507

Joe Anderson, CFP® and Big Al Clopine, CPA spitball on paying the tax on your Roth conversions on Your Money, Your Wealth® podcast number 507. If you take the money out of your retirement acco...

purefinancial.com Dec 10 2024

What Trump’s Tax Policies Mean for Your Retirement

How could Trump’s tax policies impact your retirement plans? In this episode, we break down the potential changes, from tax cuts to shifting brackets, and discuss what they could mean for your s...

sites.libsyn.com Dec 09 2024
Is BOXX the Place for Your Cash?

Is BOXX the Place for Your Cash?

Here's everything you need to know about investing in BOXX, including its tax implications and how much it could ultimately cost you. The post Is BOXX the Place for Your Cash? appeared first on The Wh...

whitecoatinvestor.com Dec 07 2024