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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Concerned about RMDs? Worried about outliving your retirement savings? A qualified longevity annuity contract defers some RMDs and guarantees lifetime income....
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Consider these strategies to avoid overpaying taxes on your hard-earned money. Your family will thank you for it. (And you’ll thank yourself.)...
It's important to know how Medicare tax works....
Today one of my colleagues at Abundo Wealth, Maggie Klokkenga, CFP®, CPA, shares some of the key things she is looking at when reviewing a client’s tax return. She provides a checklist to he...
Income taxes can hinder wealth creation. Fortunately, for Americans seeking to save on taxes, there are nine states without income tax where we can choose to reside. These states are listed below in a...
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As stated in the title, what do you all do, if you are collecting social security, about taxes? Do you have a certain percentage taken out of your social security before receiving it monthly or pay qu...
Watch this free clip from the “Estate Planning in Your Retirement” online course. Shane Perry, a TRS financial planner and course instructor, walks us through three possible scenarios for ...
Occasionally, the term “infinite return on investment” is mentioned in real estate investing. This strategy helps real estate and business ... Read more...
Today, Dr. Jim Dahle is answering all of your questions about taxes. He talks about FICA taxes, quarterly estimated payments, IRA contributions and tax deductions, paying taxes when you work in two st...
How an obscure, 45-year-old tax change transformed retirement and left so many Americans out in the cold....
I think I've come upon an answer for my Roth conversion riddle. FYI, I have a large tax-deferred ("always taxed") IRA. I'm 63. I'm going to be a widower maybe in my early 70s (incurable disease proces...
Investors should expect volatility but also try not to overreact to news. To prepare, focus now on tax minimization, protecting your portfolio and more....
For retirees, tax troubles from sunsetting irrespective of whether Congress goes red, blue or stays purple; and Social Security needs Congressional attention as well...
Wondering if anyone is in the same boat as I am. I turn 62 in December. Have a good job I like but my health is failing. Cardiac issues. I plan on retiring in Jan. My wife has a great job that she lov...
Adding pension income to Social Security benefits and income from required minimum distributions could see you facing a tax torpedo and higher Medicare costs....
Last week, Bloomberg published an article on how the rich avoid paying New York income taxes while still owning a home in the city/state. The key to their tax avoidance strategy is spending less than ...
According to the IRS, the mailings are being sent to more than 25,000 people who have more than $1 million in income between tax years 2017 and 2021, and to more than ......
Linda is retired and financially independent. Her advisor suggests she have a separately managed account specifically for tax loss harvesting. Today on Your Money, Your Wealth® podcast 479, Joe An...
Did you know, you have more control over how much you pay in taxes in retirement … than at any other time of your life? It’s true! And if you take advantage of some simple tax planning st...
Know how to navigate the IRS regs to capture the tax credits under the Inflation Reduction Act....
Hey all, I am in my 50s and need to change 401(K) providers - likely from Vanguard to Fidelity. I also run a small business, so this is specific to the Individual 401(K) plan I have with my wife toget...
Jennifer, 54, plans to retire soon. Her husband, 70, is retired, on Social Security, and dealing with some severe health issues. Jennifer worries about possibly becoming single in retirement, which co...
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...
High-tax states try to tax residents who moved to lower-tax states....
“We’re going to need to see a Japanese tax return.” “You want a what?!?” I sputtered. There are lots of things FIRECracker and I pictured when we started down the path of...
So you won the lottery - congratulations! After you celebrate, should you rip off the band-aid and convert the entire lump sum payment to a Roth IRA? That’s today on Your Money, Your Wealth®...
Joe is planning for retirement and wants to minimize his tax burden, especially on the interest earned from his three annuities. James explains that non-qualified annuities are purchased with post-tax...
April 17, 2024 – People sometimes ask me for a good and safe place to “park” their money for a short period. CDs, high-yield savings, and money market accounts would be the obvious a...
A new report sheds light on how older adult scam victims end up with big tax bills and lost retirement savings....
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,...
Parents can see the positive impact of their giving through tax arbitrage, giving cash (within limits) or directly paying for school or medical expenses....
Sometimes, divvying things up equally means one child might end up with less because of tax implications. Here’s how to avoid that....
Home » Tax Relief Companies Updated: If you’re having trouble paying your taxes this year, relief is available. Tax filing requirements and paperwork are stressful enough, but if you owe t...
So many of us will be hoping for no tax surprises when preparing our tax returns this year. This is why we want to provide you with a list of common tax surprises to watch for. After working with hund...
The rich are frequently criticized for not contributing their fair portion of taxes. However, when examining income taxes, it becomes evident that the wealthy actually contribute more than their fair ...
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Check out the latest podcast episode on retirement planning and Social Security by listening on “Apple Podcasts” or “Spotify Podcasts” and watch more retirement planning videos...
Jimmy in Wisconsin will have a pension, Social Security, and a seven year retirement shortfall. How should he cover it? Skipper in Texas has some unusual pension options, which makes the most sense fo...
Listener Drew asks about a tax strategy for juggling capital gains and Roth conversions. While it can be a complicated question – especially when large accounts are involved – James provid...
You really should start thinking about next year’s taxes immediately after filing this year’s. Better tax efficiency could save you some serious dough....
Avoid penalties and minimize taxes when you pull money out of your 401(k) or IRA....
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One strategy is to consider your filing status, which can affect the net investment income tax (NIIT) that successful retirees pay on certain investment income....
AARP program has helped homeowners get nearly $10 million in property tax relief...