Articles on Stock markets

News, Research and Analysis

Help Center
Investment Portfolios
Investment Terminology and Instruments
Technical Analysis and Trading
Cryptocurrencies and Blockchain
Retirement Accounts401(k) and 403(b) PlansIndividual Retirement Accounts (IRA)SEP and SIMPLE IRAsKeogh PlansMoney Purchase/Profit Sharing PlansSelf-Employed 401(k)s and 457sPension Plan RulesCash-Balance PlansThrift Savings Plans and 529 Plans and ESA
Personal Finance
Corporate Basics

How do my IRA Withdrawals Get Taxed During Retirement?

Different IRAs have different tax treatments. Traditional IRAs, as well as SEPs, SIMPLEs, and 401(k)s are all taxed as income in retirement. Roth IRAs are not taxed.

Traditional IRAs and the other pretax accounts will have distributions that are also includable in the Modified Adjusted Gross Income calculations which may subject them to 3.8% Medicare surtax, as well as the income calculations which determine what portion of Social Security income may be taxable in retirement.

Many people do not realize that up to 85% of social security income may be subject to income taxes.

Keywords: taxation, retirement accounts, social security taxation, 3.8% medicare tax,