How Are Your IRA, 401(k), and Social Security Taxed in Retirement? (Ep. 38)
How much tax will you pay on your IRA and 401(k) withdrawals in retirement? Will your Social Security benefits be taxed, and could retirement income increase your Medicare premiums? The answers may affect how much of your savings you’ll have available to spend.
In this episode, Ryan Thacker and Tyson Thacker explain three retirement tax traps that can catch retirees off guard. They break down how traditional IRA and 401(k) withdrawals are taxed, why additional income can cause up to 85% of Social Security benefits to become taxable, and how required minimum distributions beginning at age 73 may increase future tax bills. Ryan and Tyson also cover the widow’s tax penalty, the connection between retirement income and Medicare premiums, and why some families consider Roth conversions before Social Security benefits begin and RMDs start.
Ryan and Tyson discuss:
- How much tax you could owe on traditional IRA and 401(k) withdrawals in retirement
- Why IRA withdrawals can cause more of your Social Security benefits to become taxable
- How required minimum distributions may affect your retirement taxes after age 73
- Why higher retirement income may increase your Medicare premiums
- How the widow’s tax penalty can affect a surviving spouse’s income and tax brackets
- When Roth conversions may provide more control over future taxable income
- And more!
What’s your biggest retirement concern? Email us or leave a voicemail with your question, and we might feature it in an upcoming episode.
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