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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[168] – There are only 10 days left in the tax year. What can you do right now to maximize your refund? In this episode, Jeremy Keil discusses strategies for maximizing tax refunds and retiremen...
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Fund retirement accounts. Give to charity. Harvest losses. Get energy efficient. Here are some strategies to shrink your taxes for 2023–and beyond....
Check out Jeremy’s latest podcast on retirement planning by listening on “Apple Podcasts” or “Spotify Podcasts” or read below for How to Improve Your Relationship With Yo...
Another special encore episode just in time for year end. Managing taxes in retirement may have a greater impact than any other single cost-saving measure you take. Today, we're replaying our epsiode ...
Understand how Social Security payments are adjusted for inflation and think about your taxes for the coming year....
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New Urban Institute report shows the average American will receive much more in benefits…...
Major tax changes likely are on the way. It's time to plan now....
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Check out Jeremy’s latest podcast on retirement planning by listening on “Apple Podcasts” or “Spotify Podcasts” or read below for How to Save $100K+ in Taxes Over Your Li...
Major tax changes likely are on the way. It's time to plan now....
I’m 65 and plan on retiring from full time employment in 26 months. I have a military pension, 900k in retirement savings (mostly in non-Roth, unfortunately), planning on drawing SS when I retir...
Check out Jeremy’s latest podcast on retirement planning by listening on “Apple Podcasts” or “Spotify Podcasts” or read below for How Can Retirees Avoid the Tax Bomb in T...
 Tax loss harvesting is a strategy that investors use to reduce their tax bill. However, there are many misconceptions about tax loss harvesting, including when it's valuable and how to do it ef...
Both my husband and I will have pensions, in planning our budget for retirement how do I know how much to subtract for taxes? Between the two pensions our monthly gross pay will be roughly $8,300 -$8,...
Last week I wrote about 21 end of year tax planning moves W2 income earners can make. So of course I have to follow that up with a similar post for business owners. Let’s walk through 23 impactf...
Taxes can be one of the biggest bills facing retirees. Maximizing your tax free retirement income can greatly reduce you odds of running out of money as you age....
Steve & Sharon in Minnesota are high earners - can they get more money into their Roth IRA without paying more tax? Should Fred in western New York do Roth conversions before required minimum dist...
The IRS has introduced new income limits for its seven tax brackets for 2024. Thankfully, the thresholds have all increased by 5.4% to account for inflation. In 2023, the IRS expanded its tax brackets...
We are officially approaching the last 2 months of the year which means that you should start making end of year tax planning/financial planning moves. Now you may be wondering, “what are those ...
“You do not rise to the level of your goals; you fall to the level of your systems.” James Clear I’ve been focusing on building up my systems lately and today I’ll provide you ...
Last week, we discussed more on good budgeting practices. This week, we’re going to turn the page to the world of taxes. We are going to walk through a few introductory topics on what most peopl...
If you’re trying to find information from your prior years’ tax returns and you don’t have the old forms (who has the space to keep all that!?), you have a few options available to y...
The second home is supposed to be a place of respite, a happy place, so why interrupt that solitude with death and taxes....
The second home is supposed to be a place of respite, a happy place, so why interrupt that solitude with death and taxes....
If you're in a high tax bracket now and expect to remain in a high tax bracket after retirement, should you prioritize pre-tax retirement accounts or Roth retirement accounts for individuals? James an...
If you're in a high tax bracket now and expect to remain in a high tax bracket after retirement, should you prioritize pre-tax retirement accounts or Roth retirement accounts for individuals? James an...
Why does Becca in Florida’s advisor "poo-poo" her strategy for funding 529 plans for education? Keith, commenting on Spotify, wants to know about reimbursing yourself from a 529 plan for the sch...
Europe has a reputation for high taxes… but this isn’t always fair....
Up to $168,600 of earnings will be subject to Social Security tax in 2024, raising the taxes taken out of a high earner's paycheck to $10,453....
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There is no shortcoming of bad tax advice on social media. It feels like everyday I see a new post, video, etc. with some fragmented piece of tax advice that is so far away from how it works in the re...
Photo credit: jb As we approach the extended income tax filing deadline, folks all over the country are in a mad rush to fill out returns and complete the filing process. Software for return preparati...
I have a decent 401K from a job I left 6 years ago. I left the money there because it was doing really well. Well, now it's not. It lost money as market took a nose-dive last year. It still isn't doin...
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March 30, 2023 — It might come as an unpleasant surprise to many people that Social Security income can be taxed on both the federal and the state level. While there is no escaping the federal t...
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Many families discover that trying to mitigate the cost of long-term care can conflict with another common retirement concern — reducing taxes for retirees and their heirs....
The Case for a Roth for Individuals in High Tax-Brackets If you read the title of this post and are confused, I don’t blame you. When investors are taught about using a Roth vs Traditional IRA, ...
By Dr. James M. Dahle, WCI Founder More income is almost always a good thing, but not all income is created equal. Inadequate financial literacy often leads to paying too much tax on the income you do...
She bought a typical suburban home in Texas and paid $3.33 in state and county property taxes. Times have certainly changed since 1960. submitted by /u/Wizzmer[visit reddit] [comments]...
In retirement, each source of income has its own set of tax rules. You may need to set up withholding and quarterly payments. Here are the tax rules that apply....
The previous post Opt Out of Underpayment Penalty in TurboTax covered how TurboTax calculates an underpayment penalty that the IRS may not actually assess. You have to take an extra step to decline th...