Can I be taxed in retirement? How?

Can I be taxed in retirement? How?

  • November 21, 2023
  • David Greene
  • Comments Off on Can I be taxed in retirement? How?

There are six primary ways you can be taxed in retirement: (1)  Traditional IRA or 401(k) withdrawals – this money is always taxed as ordinary income when taken out; (2) Social Security benefits – whether or not taxed depends on how much you earn otherwise; (3) Pension income – generally taxed as ordinary income but certain military or disability pensions may escape taxation; (4) Investment gains – occurs when property is sold for more than purchased.  This is called a capital gain; (5) Investment income – this can be in the form of rent, dividends or interest from srtocks, mutual fiunds, etc.; (6) Bank account interest – this is counted as ordinary income. Other types on receipts that are taxed as income are lottery winnings, gambling winnings, the deficiency aftert a foreclosure, etc.

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