Posted by MarkB_MI on January 31, 2015 at 02:19:04 from (70.194.0.224):
In Reply to: Retirement taxes posted by vscummins on January 30, 2015 at 17:26:04:
Whether it's a retirement plan, 401k or IRA, it's pretty straightforward: if your contributions were taxed when you put them in, you don't pay tax on the amount of AFTER-TAX contributions. But anything above the after-tax contributions, including any pre-tax contributions, is subject to tax.
I assume none of her retirement is in a Roth IRA; the rules for a Roth IRA are different.
If we are talking about a defined benefit pension plan, she will probably have multiple options for how to take her pension. Right now, the interest rate used to calculate lump-sum distributions is quite low (~1 percent). The lower the interest rate the higher a lump-sum distribution will be relative to an annuity. For this reason she should consider taking a lump sump (or the shortest possible period certain distribution) and roll her taxable distributions into an IRA. That way she doesn't pay taxes until she actually draws the money out of the IRA.
We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]
Today's Featured Article - Listening to Your Tractor - by Curtis Von Fange. Years ago there was a TV show about a talking car. Unless you are from another planet, physically or otherwise, I don’t think our internal combustion buddies will talk and tell us their problems. But, on the other hand, there is a secret language that our mechanical companions readily do speak. It is an interesting form of communication that involves all the senses of the listener. In this series we are going to investigate and learn the basic rudimentary skills of understanding this lingo.
... [Read Article]
Latest Ad:
2022 John Deere 5045E, 4wd, front end loader and 3rd function with grapple. 120 hrs, 55k new, must sell
[More Ads]
All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy
TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.
