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 1432
Healthcare subsidies are like a tax break and should always be optimized, right? That seems like an easy question that should have a straightforward answer. But the correct answer is, “It depend...
Spouses can coordinate their retirement benefits to get bigger tax breaks and employer contributions....
Key changes to Roth 401(k) account rules may affect your tax planning and retirement savings....
How much money have you saved in your IRA or 401K? Making contributions to one of these tax-deferred retirement accounts is easy. But withdrawing this money in retirement … gets complicated. Th...
Ensuring that younger generations don’t waste the wealth you’ve worked so hard to build starts with careful estate and tax planning....
My wife & I (both age 70) are selling commercial real estate we have owned for 40 years and lived on for 20. After capital gains tax & depreciation recapture we still end up with a nice bucket...
These important issues are all connected and can affect your taxes, likely setting them at a certain level for the rest of your retirement....
Consider these strategies to avoid overpaying taxes on your hard-earned money. Your family will thank you for it. (And you’ll thank yourself.)...
Managing the taxes that come with an inherited IRA takes smart planning, especially since the SECURE Act eliminated the 'stretch IRA' game plan for most folks....
Follow these strategies to maximize your IRA and minimize the effects of taxes....
Since a surviving spouse gets the most flexibility and tax breaks of all possible beneficiaries (other than perhaps a charity), it seems that choosing your spouse as the beneficiary of your IRA may be...
IRS today announces small inflation-adjusted bump for owners of triple-tax-advantaged Health…...
A bill was recently introduced in the House by Rep. Angie Craig (D-Minn) called "You earned it You keep it". It would eliminate federal taxes from Social Security wages. A windfall for most retired pe...
Forbes compared more than 800 locales in America on everything from housing costs and taxes to healthcare, air quality, crime and climate change and natural hazard risk. These are the top 25 cities fo...
I inherited my husband's IRA retirement upon his death. I am liable for Federal taxes if I transfer this to my IIRA retirement?...
Save on taxes and donate more to your favorite charities by using a donor-advised fund, or DAF. Here’s how to maximize your giving with this strategic approach....
Kyle and his fiancée are in their 30s, have done a great job saving, and are in a high tax bracket. Would it make more sense for them to contribute to their 401(k)s or Roth 401(k)s for retireme...
How an obscure, 45-year-old tax change transformed retirement and left so many Americans out in the cold....
Investors should expect volatility but also try not to overreact to news. To prepare, focus now on tax minimization, protecting your portfolio and more....
Some economists argue that tax-advantaged retirement plans are not as beneficial as they seem....
In addition to increasing the diversity of your portfolio, adding a non-traded REIT within your Roth IRA allows the resulting dividends to grow tax-free....
After I left the Navy I started working and putting money in a pre-tax 401k. About a year ago I decided to shift my contributions to a Roth 401k. But still about 90% of my 401k is pre tax. I wish I ha...
The new rules apply to IRA beneficiaries who received an inheritance in 2020 or later. Tax planning can help minimize the taxes you owe on your inheritance....
When I was working full-time, and putting away money into my retirement plans and after-tax accounts, I could always put a smiley-face on long-term market declines by thinking of those times as "buyin...
Hi: I retired in 2022 and was charged a part D monthly adjustment in 2022 for high income reported on 2020 tax return filed in April 2021. May I file for a refund based on 2022 income? If so do I use ...
My institution is offering a full year's salary for relinquishing tenure after this academic year. I wanted to retire anyway, so this seems like an unexpected gift. I know that the taxes will be high,...
We (M 65, F 59 both still lol working and plan to along as possible) own 3 homes and plan to sell two of them to partially fund our retirement. We’ll sell home #1 and bank the $500K tax free cap...
Self-employed workers lack employer-sponsored retirement plans but have other options for tax-advantaged retirement accounts....
It’s no secret that Health Savings Accounts (HSAs) are intended to help with the burden of medical costs, allowing the account holder to contribute pre-tax dollars to ......
Let’s compare traditional IRAs, traditional 401(k)s, Roth IRAs and Roth 401(k)s. Which might work best for you could depend on your income and tax status....
Revocable trusts allow the trust maker complete control over the assets and can be quite efficient when it comes to capital gains and income taxes....
Thebrief’skey findings are: When the employer cost for employer-sponsored health insurance (ESHI) rises, it slows wage growth and erodes Social Security’s tax base. Both these effects were...
Photo credit: coop It’s a little known fact that certain costs for caregivers, licensed or unlicensed, may qualify as medical expenses for tax deductions. Maintenance and personal care service c...
For a solid estate plan, you should put powers of attorney in place, designate beneficiaries, tackle tax planning and more....
Good news for wages and Social Security tax base, but will costs stay flat? Health care costs are a large and growing share of the nation’s GDP. One way those costs feed into the general economy...
Roth conversions can be a powerful retirement-planning strategy. Watch this clip from Retirement University’s online course, “Tax-Saving Strategies in Retirement” to learn how Roth c...
Life insurance not only provides liquidity for your family to cover immediate expenses after you pass, but it also can minimize estate taxes....
If you’ll have multiple income streams in retirement, you’ll need to coordinate everything so you don’t end up paying taxes on your Social Security benefits....
A donor-advised fund, or DAF, lets the donor reap tax benefits while also being able to direct how the money is distributed and invested....
Is the loophole that one can make contributions at age 65 (or 65+), tax free as expected, and do any of the following with no penalty: a. With drawl the full amount. At any time. And pay tax at your c...
Why would a financial advisor suggest that Frank in Lake Wobegon sell a piece of inherited property, pay 25% tax, and invest the lump sum? Mark in Florida is 72 and invested in CDs. Should he go back ...
Hi - tax time coming up and I have until April 15th to decide to put a lump sum into a traditional IRA for 2023. I make too much to reap any tax benefits, but isn’t the fact that this grows tax ...
Big Tex, Paul in Maryland, and Nick in Alabama all need to know how much money they should convert to Roth to pay as little tax as possible, today on Your Money, Your Wealth® podcast 471 with Joe ...
This month’s resources explore the benefits of utilizing tax-deferred accounts as well as the potential upsides and challenges of later converting to Roth. Resources will challenge you to think ...
Hi, unfortunately I have RMDs coming up and it will boost my retirement income, increase taxes as well as trigger IRMAA. Any recommendations on how to reduce taxable income during retirement? POTENTIA...
ANYONE HAS ONE? ? I DON'T! ? 5 questions to ask if your workplace offers an after-tax retirement savings plan. By Tamara E. Holmes. Published February 20, 2024. https://www.aarp.org/retirement/plannin...
We need to get our Congress Representatives to support the 'You earned it you keep it' bill. This allows for raising the cap on the taxable earnings and stopping the federal taxes on SSN. This would k...
Looking to retire in a year or two and planning to sell my home with stairs in a high tax community for a ranch-style home in an area of lower property taxes. I like the idea of living in the country ...
5 Reasons to Retire in Florida … and 4 Reasons to Think Twice. Come for the sunshine, low taxes and endless golf, but be prepared for hurricanes, roof rats and tourist hordes. By Bob Niedt. Pub...
Is there a way to pay medicare premiums with your HSA funds? Is it even worth the hassle to save some money on taxes?...