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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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...
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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...
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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?...
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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....
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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...
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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 /...
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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....
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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...
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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....
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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.)...
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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 ...
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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...
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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...
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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...