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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Kiplinger editor Joy Taylor answers readers' questions on year-end tax planning strategies involving IRAs and other retirement accounts.
After decades of working and paying income taxes, retiring with a smaller tax bill can feel like a reward. But those low-tax years may present an opportunity that disappears once Social Security, pens...
An interview with Stephen Lee, CPA and founder of The Locum CPA, about managing 1099 income, S Corps, quarterly estimated taxes, business deductions, and retirement accounts for the self-employed. The...
We were passive real estate investors for years, but my wife wanted something flexible. Then, REPS and reduced tax returns became reality. The post Here’s How I Got $83,000 Back on My Tax Returns appe...
Before Dec. 31, investors can potentially cut taxes through tax-loss harvesting, charitable giving, smarter rebalancing, and avoiding costly year-end tax traps.
Accumulating retirement wealth is only half the job. How you withdraw it can have a significant impact on taxes, Medicare and what you ultimately get to spend.
Saving too well can create a big tax problem once required minimum distributions kick in, making proactive income management and strategic withdrawals essential.
Saving for retirement in a 401(k) is a smart move, but can also lead to a troublesome tax bill years later. The solution? Diversifying while there's still time.
Developing a tax-savvy giving back strategy can be an important part of a comprehensive financial plan — and help make doing good an effective year-round endeavor.
This quarterly breakdown of key deadlines and decisions can help to maintain an effective, proactive tax plan.
Learn when taxes may apply, how distributions and the 10-year rule can affect taxation, and what to consider before withdrawing.
"Homeownership Opportunity Act" would let Americans tap workplace retirement savings for down payments and closing costs without taxes or penalties, but could come at a steep cost to retirement securi...
Southwest Florida is no longer just a vacation spot. It has evolved into a premier financial haven where wealthy families can protect and grow their fortunes.
After Trump and his veto pen are gone, tax increases will be aimed at savers and high-salaried workers. The clock is ticking. Update your financial planning.
Shoring up Social Security to protect future benefits will likely involve major tax changes.
Don't stop tax planning when RMDs start. Making these common tax mistakes in your 70s can result in needlessly generous payments to the IRS.
Happy Halloween community. This is a cross-post from a subreddit many of us enjoy … [r/generationjones](r/generationjones) . Not my own, but enjoy. Thanks! submitted by /u/MidAmericaMom[visit reddit] ...
Two beneficiaries can inherit similar balances and end up with very different tax bills.
Learn the 401k hardship withdrawal rules, qualifying reasons, and tax implications for 2026 before tapping your retirement savings.
Most people think tax planning means finding ways to pay less in taxes this year. But reducing today's tax bill doesn't necessarily mean you'll be better off in retirement. Jeremy Keil talks with Free...
Here's how retirees can stop compounding tax leaks without large, expensive Roth conversions.
A properly executed cost segregation study can produce tens of thousands in depreciation and cut your tax bill by $40,000-$90,000. The post Cost Segregation for Physicians: How a $500,000 Rental Can W...
The tax benefits of a range of income and estate tax planning strategies are affected by interest rate changes.
Tax-savvy withdrawals in retirement are often overlooked or ignored by investors. That’s bad news when the Required Minimum Distribution (RMD) comes along! Also, the Widow’s Penalty is overlooked as w...
A new tax break for charitably inclined taxpayers takes effect in 2027. Taxpayers should review the rules and prepare to maximize the benefits beginning next year.
Relocating only because of state income tax rates can backfire unless you evaluate your entire financial picture.
Retirees in California enjoy sunny days, tasty meals and more, but the state comes with some unique financial considerations. Here's a guide for DIY retirees.
Scott Kirby's comments on a national wealth tax and a near-100% inheritance tax come as states debate new taxes on the wealthy.
Hidden rules, automatic surcharges, and tax-bracket traps can catch even careful retirees off guard. Here's what to know.
Taxes may be the last thing on your mind right now. The kids are studying for mid-terms and the holidays ... Read more
If you don't need or want to take your required minimum distributions (RMDs), you can consider these strategies to help lower your tax bill.
Marginal tax rates drive choices about investment portfolios, Roth accounts, side gigs and charitable donations. Here’s how to calculate yours before you make any moves.
A 4.2% higher wage base means more taxes for some earners next year.
Newsom backs Prop 42’s retirement pitch. Its broader effect is to block the billionaire tax and restrict California’s future revenue choices.
Required minimum distributions can be used as a tool to help lower your tax bill, smarten your charitable giving and keep your retirement strategy on track.
Let's think about if becoming an S Corp would be a a great cost-saving measure for you or if it would be an unnecessary and costly election. The post When an S Corp Saves Taxes and When It Doesn’t app...
Joy Taylor answers questions from readers on federal and state estate taxes.
Thankfully, not all the money you receive in retirement is subject to federal income tax.
A tax planning strategy that combines direct indexing and tax-loss harvesting could help retirees minimize what they pay Uncle Sam and keep more of their wealth.
What ratio of Roth to traditional to taxable should you be picking? After a great deal of study and calculation, we have the correct answer. The post The Ideal Mix of Roth, Tax-Deferred, and Taxable A...
The market's return is only part of the story. Find out how taxes can quietly erode your retirement wealth and the planning strategies that can help you keep more of what you've worked so hard to buil...
Eighty percent of retirees pay $0 in federal income taxes, but since you have a pension, you're likely in the 20% who will pay taxes. What you can do about it.
Retirees can earn more interest today, but even small increases can trigger higher taxes, shrink deductions or raise future Medicare premiums.
The generation-skipping transfer tax is a federal tax on gifts or inheritances to grandchildren or individuals two or more generations younger.
If a drop in income at retirement has put you in a lower tax bracket, find out whether tactical Roth conversions now could reduce your tax liability forever.
Some lawmakers are calling for higher payroll taxes for certain workers to help save Social Security from insolvency.
We are pleased to announce the availability of our new RMD Tax Present Value Estimator workbook. To determine the present value of future household spending liabilities, the Actuarial Financial Planne...
Gen X has had to adapt to a changing retirement landscape, with more responsibility for building their own financial future.
An even split in your will could cause resentment among adult kids if caregiving hasn't been shared equally. How you can stop that from turning into a dispute.
Passing down assets can leave kids with a massive tax bill. This week's Wealth Wise advice column explores the strategies advisers use to leave an inheritance tax-free.