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 1286
The IRS recently revealed its tax inflation adjustments and updated tax brackets for 2025. These adjustments are aimed at helping ... Read more...
The IRS has announced new income limits for its seven tax brackets for 2025, with income thresholds increased by about 2.7% to adjust for inflation. This follows a 5.4% increase in 2024 and a historic...
The IRS has announced the cost‑of‑living adjustments for pension plans and other retirement-related items for tax year 2025....
In the world of real estate investing, 1031 exchanges have become a popular tool for deferring taxes and maximizing investment returns. In a nutshell, 1031 exchanges are unique investment strategies t...
One of the most sweeping changes to U.S. tax code in modern history could be on the horizon. Now is the time to maximize the legacy you leave your loved ones....
Annuities can play a valuable role in your retirement plan — as long as the tax implications have been properly factored in. Here's an outline of the key rules....
Is there a good site that has either a chart or better yet, a calculator to compare different states/cities for taxes (income, property, personal property, sales, etc)? I can find the basic data, but ...
Should Suzanne in Michigan do Roth conversions in 2025 and 2026 since she’s widowed and won’t be married filing jointly? How should she pay the tax on her conversions? Jennifer in Washingt...
If you're not careful about how assets are divided or sold, you could get hit with a big tax bill....
There are significant tax-reduction opportunities available when employer stock is held in a 401(k) plan. But you have to meet all the qualifications....
Here's a breakdown of the logistics, including probate, taxes and who gets what if you die without a will....
The IRS just increased the exemption as we enter what could be the final year of TCJA....
Don't let election drama tempt you into changing the makeup of your portfolio. The sensible move right now is to work out how to lower your future tax burden....
I am wondering if there is a decent calculator online or other advice on trying to figure out my taxes in retirement so I have a better idea of what gross amount I need to draw each month. My income w...
You can apply key minimalism concepts for potential tax savings. Here’s how....
The number of taxpayers hit with penalties for underpaying estimated taxes has increased. But retirees can use a traditional IRA to help avoid the penalties....
From taxes to Social Security and beyond, the election could change your retirement depending on which candidate wins. Who takes the House and Senate also matters....
I have a non-retirement investment account where I have invested in a particular stock and has suffered losses. I would like to claim those losses this year to the maximum amount of $3000. I also own ...
With low property taxes and tax-free foreign income, this tropical paradise could make you rethink retirement as a U.S. expat....
Does the bad outweigh the good? Here's what could happen if your Social Security income goes untaxed....
Retirement savers with big bucks in traditional IRAs and pretax 401(k)s could face huge tax bills when RMDs kick in. One potential solution? A Roth 401(k)....
Budget watchdogs each release analysis of candidates’ professed tax and spending plans while…...
The answer depends on several factors. The key is to create a plan that combines all aspects of retirement — income, taxes, health care and legacy planning....
Could less mean more, when it comes to taxes and the Social Security COLA for 2025?...
The Social Security Administration has announced significant changes affecting millions as we approach a new year....
Hawkeye and Elle are age 61 and in the 32% tax bracket. How should they get money into their Roth accounts for tax-free retirement income? Clark and Ellen are 69 and 68, expenses will pretty much be c...
Can Jessie and Becky in Iowa retire now at age 52? Should Robert and his wife file their taxes separately, to pay less tax on their required minimum distributions? Can Joe and Al validate Mike in Minn...
It's not always easy determining how much you owe in state taxes for passive investments. Here's a guide that will help you figure it out. The post The 20 States Real Estate Investors Should Avoid Unl...
Charitable giving in retirement isn't right for everybody. But in certain situations, a tax-efficient donor-advised fund (DAF) may be well worth considering....
Upstream basis planning can help younger wealthy people pay less taxes on highly appreciated assets if they appoint an aging relative as a trust beneficiary....
Should David in Ohio use 457 funds to do an in-plan Roth conversion in his 403(b) plan, and should he hire a financial advisor? Chris in DC needs a retirement and Roth conversion spitball analysis, an...
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...
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...
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...
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...
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...
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...
James responds to listener Jerry’s question about the optimal time to distribute inheritance or charitable gifts: before or after passing away. James walks listeners through four important thing...
A listener says, “Eventually, one spouse will pass before the other, which will often catapult the survivor into a significantly higher tax bracket. Shouldn’t a Roth strategy take this int...
Benjamin, nearing retirement at 65, faces a familiar dilemma with his taxable account housing expensive mutual funds. Despite their underperformance, converting to low-cost index funds entails a signi...
Sammy, a 51-year-old retiree, is seeking advice on how much she should convert from her traditional IRA to a Roth IRA each year to avoid jumping tax brackets and minimize the taxation of her social se...
James explores the nuanced aspects of Roth IRAs, shedding light on intricacies that can confound even experienced investors. Through a listener question from Manfred, a retiree contemplating a $50,000...
 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...
From Roths to HSAs to creative Social Security timing, retirees have many options to minimize their taxes. You might be surprised what a difference it can make....
Sweeping new retirement rules and tax law changes touch everyone from high-earners, retirees, employees, employers, and individuals inheriting retirement accounts....
How much should you save in pre-tax accounts vs. post-tax accounts? Joe Anderson, CFP® and Big Al Clopine, CPA spitball on the "age plus 20" rule for retirement savings, Roth 401(k) contributions ...
Learn to make smarter financial decisions with math-driven strategies. James Lange shows how Roth IRA conversions and tax planning can maximize wealth and reduce taxes....
Unsustainable deficits will likely force an end to this era of low taxes, but you can plan for it....
Today on Your Money, Your Wealth® podcast 495, Joe Anderson, CFP® and Big Al Clopine CPA spitball on three different listeners’ strategies for paying the tax on a Roth conversion now, to...
An IRA distribution can be used to reduce or eliminate those pesky quarterly estimated tax payments. See how. The post Using an IRA Distribution and Withholding to Reduce Estimated Tax Payments appear...