post by Sam Collins
Taxes and Retirement… True or False?
Do income taxes go away when you are retired? True or False.
Answer…False
Remember that all monies contributed to pretax retirement plans, may be taxable when that money is withdrawn.
Social Security are not sheltered from income taxes? True or False.
True…
A portion of your Social Security benefits may be included in your taxable income. It all depends on your gross income.
There are no tax consequences if you don’t start to withdraw your pretax savings at the age of 70 ½?
False….
There is a 50 percent tax penalty on amounts that the IRS requires to be taken out after age 70 ½ that are not withdrawn when required. In tax terms these are called “minimum required distributions.”
(source NCOA)
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Remember keep moving forward to stay ahead in reverse.
