How Your Retirement Savings and Income Are Taxed
There is one commonality that everyone shares in retirement – a price tag. Your price tag may be different from your neighbors’ or your friends’, but we all have one. That price tag or cost will depend on your goals and the lifestyle you desire to have in retirement. It also factors in housing, utilities, health care expenses, inflation, taxes and other expenses.
Building a healthy nest egg to live off of in retirement is probably one of the biggest challenges you may face, especially when you have competing priorities.
Identifying the sources of income that you can depend on is one of the first tasks in evaluating your retirement landscape. The bulk of retirement income for most people will come from personal savings and investments, Social Security and for some, earnings from continued employment. Examples of personal savings and investments include employer-sponsored retirement plans, individual retirement accounts (IRAs) and annuities, as well as individual stocks, bonds and mutual funds.
Different tax rules apply to each of these income sources. However, there are a variety
