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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Eliminating taxes on Social Security benefits could impact your finances. Here's what you need to know....
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...
The complicated way Social Security is taxed can catch middle-income earners by surprise....
If you've been a good saver and face large required minimum distributions (RMDs), then you need to plan for how to head off or limit higher Medicare premiums....
It is not difficult to find people who have received a fake email claiming to be from the government or a retailer asking them to clear up a problem with their Social Security number, tax filing, or r...
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...
The tax cut would reduce Social Security and Medicare revenues by $1.5 trillion over the next decade, sharply reducing benefits for millions of recipients...
At Keen Wealth, "tax season" is never really over. Our checklist-driven, comprehensive planning process is constantly taking in new information about the folks we work with and changes to tax law. By ...
After taxes and inflation, the real return you get may not be as good as you think. Here's another approach to consider: fixed deferred annuities....
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...
Some states tax IRA conversions differently than the federal government. Know the details before you decide on a conversion....
Discover the key factors to consider before deciding to retire overseas, including affordability, taxes, medical insurance, and residence requirements....
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...
Ok retired 3 days ago. Married, both retired. I m no financial brain surgeon so please be aware of this. So i retired half-way through the year and have to figure out our tax bracket. I don’t wa...
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....
Irrevocable trusts can be structured so that trust property is either included in the potentially taxable gross estate or removed. What are the pros and cons?...
Before you start packing, you might want to check out the potential impacts on your taxes, investments, retirement planning and estate planning....
Maximizing your tax free income in retirment is worth celebrating. Keep reading as we share way to get more of your retirement income from getting killed by taxes....
When it comes to investing for your financial future, understanding the tax consequences is important to growing wealth. Because it’s not just what you make, it’s what you keep, that count...
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...
Irrevocable trusts can be set up so that the trust maker no longer pays income taxes, and the taxes are instead paid by the trust. What are the pros and cons?...
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...
These steps, including converting to Roth IRAs, using a Roth 401(k) and leveraging life insurance and annuities, can help reduce your taxes in retirement....
One way to build wealth is to max out your company’s retirement plans, but doing it in tax-efficient ways can make an even bigger difference....
Mark asks a common question – What should I do regarding my withdrawal strategy? Should I first pull from my brokerage account or my IRA? There is no one-size-fits-all answer, but James provides...
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...
Understanding the best way to tap your IRAs and other accounts can help you preserve your savings and lower your tax bill....
The younger cousin to mutual funds, exchange-traded funds offer some convenient advantages, like lower fees and greater tax efficiency....
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Becoming aware and fully understanding which tax-saving strategy fits your needs is important in maximizing your retirement wealth. Minimizing taxes in retirement can be tricky. Below you will see a b...
Typically folks seem to pick places near family, sunny climates or tax havens when they look to relocate for retirement. Anyone have experiences that run counter to those trends and thoughts on tips /...
If you regularly donate to your church or other charities, donor advised funds (DAFs) might be something you want to look into. These funds offer some big perks. First off, you get a potential tax ded...
Seven decades after he became addicted to Superman, Gary Prebula’s collection of graphic novels and comics has a permanent home at the University of Pennsylvania library....
Spouses can coordinate their retirement benefits to get bigger tax breaks and employer contributions....
Retired last year, living off savings and small SS for my wife until I turn 70 in December. Filed taxes for 2023 using HR Block software, paid state and Feds calculated taxes due. Then in last few wee...
Most of us have had a solar panel sales rep knocking on our door to pitch the benefits: huge savings, ... Read more...
With QCDs, retirees can save on taxes by making donations from their IRAs directly to charity. Here's what you need to know about qualified charitable distributions....