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
About 5 years ago, when I started doing a relative's tax return, he was always prompting me to make a quarterly tax payment. Since he had to take RMDs and since he did not need the income from the RMD...
Unlike tariffs, taxes are an area where investors do have control to improve their financial lives....
The Social Security program was designed to support lower-income retirees more by replacing a larger share of their past earnings than higher earners receive. But the subsidies that encourage workers ...
A little-known feature of RMD tax withholdings could help minimize a client's effective tax burden. Not all financial advisors are on board with the strategy....
The clock is ticking on the estate and gift tax provisions in the Tax Cuts and Jobs Act, so the sooner you act on removing assets from your estate, the better....
What if you could turn your biggest retirement expense into your greatest savings opportunity? In this episode, Tyson and Ryan Thacker from B.O.S.S. Retirement Solutions sit down with Brandon Olson,&h...
Why are taxes one of the biggest retirement expenses, and how can you minimize them? Join Ryan and Tyson Thacker for an episode of Retirement Solutions The Podcast as they…...
Answering reader questions about tax-loss harvesting, tax implications for changing your 529 beneficiary, gift tax rules, tax withholdings, and the home office deduction. The post Get Your Tax Bill Do...
A new bipartisan bill could mean bigger retirement tax savings to offset taxes on Social Security and high prices....
In this episode, we cover key tax considerations around wealth transfer. We cover the differences between federal estate tax and state inheritance tax, and explain why the stepped-up basis is such a p...
FROM THE ARTICLE: Legislation to Reduce Tax Burden on Older Americans. Bill would boost deductions for those ages 65+, helping offset Social Security income taxes. By Emily Paulin, AARP. Published May...
In our Ask the Editor series, Joy Taylor, The Kiplinger Tax Letter Editor, answers readers' questions on tax deductions and losses....
Selecting the right state for retirement can significantly impact your financial well-being....
Health Savings Accounts (HSAs) don’t get much attention—but they should. With triple tax advantages (tax-free contributions, growth, and qualified withdrawals), HSAs offer a level of flexi...
To improve low-income households’ economic well-being, the social safety net provides both cash assistance and additional resources to support a better lifestyle – safer housing, more educ...
I received many questions after concluding in my post “How Much is Enough to FIRE in San Francisco” that $5,654,000 was enough to cover my current and planned future spending needs....
The GOP budget blueprint could slash lifesaving programs for millions of U.S. households....
It's important to stay tax aware when it comes to your finances. On this episode, we explore some of the latest updates for 2025. Glenn is available for in person and online meetings if you'd like to ...
I just retired and had to buy a house late. I am in year 3 of a 30 year mortgage at 6.375%. I have enough in pre-taxed income, 401k, HSA, and Roth to live comfortably but not lavishly. Would I be smar...
Now that another tax season is in the rearview mirror for most of us, what lessons can you take from what you learned about your finances to plan for the future?...
Tax-loss harvesting is a strategy where you sell losing positions to get a tax deduction. Here's how to tax-loss harvest with Vanguard. The post How to Tax-Loss Harvest with Vanguard appeared first on...
Not only could you get a tax break, but the compounding effect over 35 years could turn the average refund into nearly $14,000....
Here are the multiple ways you can use a QLAC, from managing retirement risks to creating income for specific retirement needs and wants....
Last year, I paid six figures worth of state taxes. How can I justify continuing to live in this state when it costs so much money to do so? The post High State Income Taxes: The Ugly, the Bad, and th...
You may find filing your taxes to be more complicated than when you worked full time....
To read this story on KSL.com, click here. Up to 85% of your Social Security benefits could be taxed. Many families planning for retirement don’t realize this – or how…...
Hi Everyone: I hope somebody can clarify something I am confused about if you collect Social Security and choose to work as well (before full retirement age). I understand in 2025 if under the full re...
Not ready to file taxes by April 15? Here's how to file an extension with the IRS. Some states have been declared federal disaster areas, providing some taxpayers automatic extensions....
Tax planning might not top everyone's list of leisure activities, but in the middle of tax season there’s a hidden opportunity. What if, instead of seeing it as a mere logistic hurdle, we embrac...
Across party lines, many believe saving Social Security trumps other financial considerations....
Want to pay less in taxes during retirement? You actually have more control over your tax rate than you might think. James breaks down how different investment accounts—like brokerage accounts, ...
Will your taxes go up? Stay the same? Go down, even? Jeffrey Levine is Chief Planning Officer at Focus Partners, Professor of Practice in Taxation at the American College of Financial Services, and th...
Splitting retirement funds into three buckets with distinct tax treatments can help you avoid a nasty tax bill down the line. Here's how the strategy works....
Use your 2024 tax refund to boost short-term or long-term financial goals by putting it in one of these six places....
Planning for the future should involve strategizing to minimize taxes. Explore 25 tips to help you plan, do retirement tax filings, and save money. The post Video: Taxes in Retirement Office Hours app...
The ultra-rich don’t waste time complaining about taxes like everyone else. They know the game, and they play it better than anyone. While most people see taxes as unavoidable, the wealthy treat...
To reach financial independence, you need to be unconventional. When everyone else owned a car, we took public transit. When everyone else ate out, we packed our lunches. When everyone else bought a h...
President Trump signed an executive order forcing the federal government to phase out paper check disbursements by the fall....
The April 1, 2025, deadline for required minimum distributions (RMDs) is fast approaching for retirees who turned 73 in 2024....
Planning for the future should involve strategizing to minimize taxes. Explore 25 tips to help you plan, do retirement tax filings, and save money. The post Taxes in Retirement: 25 Terrific Tax Planni...
Take steps to avoid a surprise tax bill and underpayment penalties....
Tax incentives allow for deductions and potential tax-free earnings — benefits accessible only to accredited investors in small producer projects....
Most Employee Stock Ownership Plans (ESOP) participants transfer company stock to an IRA starting around age 55, so taxes on that money have been deferred....
Successful investors will take advantage of tax-free investments to lower their tax burden but should take care not to sacrifice higher returns in doing so. The post 10 Best Tax-Free Investment Option...
Strategic Roth IRA conversions can set you up for tax-free income in retirement and a tax-free inheritance for the people you love....
A long and active retirement may be costly — and may even bump you into a higher tax bracket. Paying some taxes on your savings now could be the answer....
If providing healthcare to more Americans is the goal, the COVID-era tax credits for people buying insurance on the Affordable Care Act (ACA) marketplaces have been a big success. Enrollment in ACA po...
You might’ve heard whispers about the “Buy, Borrow, Die” strategy. Sounds like something only billionaires in boardrooms talk about, right? But it’s not. It’s a perfectly...
If you want to retire in or to California, you may wonder how California will take your Social Security and other retirement benefits....
Investors are looking to take some profits before they disappear. Fortunately, there are strategies that can reduce capital gains taxes on investment profits....