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.
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I am retiring at the end of August !!! Yeah!!! Need some more education on estimated tax payments. Two situations in the coming years. 2024: Through Aug, taxes have been deducted from my paycheck. I w...
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I'm interested in the idea of no taxes on Social Security benefits. I understand that this is a campaign promise by a presidential candidate but feel it is something that AARP should support....
In this episode, Devin and John dive into a variety of listener questions, discussing annuities, maxing out retirement plans, why HSAs aren't widely talked about, IRMAA, and more. Tune in as we explor...
Last month I wrote about how I’ve used the Affordable Care Act (ACA) to bridge the gap to Medicare. I pointed out that lowering the adjusted gross income (AGI) I report on my federal tax return ...
The single biggest retirement planning mistake to avoid, the problem with tax professionals, and answers to some of the most frequently asked retirement questions we get on YMYW: should you name a tru...
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In this episode of Big Picture Retirement, we’re back answering more of our listener-submitted questions. Join us as we cover: Anna's Query: When will NESARA begin? Ron's Question: Clarification...
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Retirement tax planning should begin well before retirement. Listener Jodie, with over $2 million in assets in various types of accounts, is concerned about the high tax bracket she anticipates she be...
Answering listener questions about quarterly estimated payments and the safe harbor rule, tax-loss harvesting and not letting the tax tail wag the investment dog, and what to do when you do not couple...
My wife and I are planning to retire at the end of the year and we're in a position where the majority of our pension pots are in my name. It means that I will quickly hit the threshold for paying inc...
Listener Michael asks about how Social Security is taxed, the rationale behind the 50% and 85% tax thresholds, and the implications of these taxes on Social Security and IRA withdrawals. James respond...
How is Kimberly’s strategy for reducing her retirement taxes by doing Roth conversions and qualified charitable distributions? Is Patrick’s tax loss harvesting transaction a wash sale? At ...
Your retirement plan isn't complete unless you have figured out how to lessen the impact of taxes on your nest egg. Here's where to start....
Photo credit: jb I’ve written about this topic a few times in the past, such as in this article on tax diversification of your investment accounts. It’s an important topic, but probably th...
My understanding is that you have to file a witholding form to have taxes withheld from Social Security payments. I'm curious about whether you have money withheld, if so how much, and what is the rea...
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Estate planning is critical to ensure heirs don't get hit with millions in estate taxes after you die. You can also protect your digital assets from litigation....
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Before you start packing, you might want to check out the potential impacts on your taxes, investments, retirement planning and estate planning....
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I met the blogger Frugal Professor last week when he traveled to my area for a family gathering. I learned from his blog post that he earned over $5,000 tax-free by transferring a Roth IRA to Robinhoo...
Will their $5 million nest egg get them to ages 85 and 100? Pa and GiDi are 65 and 60 and retiring now. As they consider moving to the no-income-tax state of Nevada in retirement, they have some decis...
David has a question about taxes in retirement: When you’re retired and no longer getting a regular paycheck from which your employer withheld tax payments on your behalf, how do you estimate th...
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My husband is 55 and 5 years away from our target retirement date. We currently live in Florida and are debating whether to move to GA. We have family there and FL is changing rapidly. We've been here...
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So i m retiring soon, my wife is already retired. As far as pension, healthcare, social security, 401K, taxes…. I m fine with these important aspects of retirement What i want to look at now is...