Some new retirees are surprised to learn their retirement income — for example, from Social Security and tax-deferred retirement plans — is taxed. Withdrawals from traditional (but not Roth) IRAs and 401(k) plans, and pension and annuity benefits (depending on how the accounts were funded), are generally taxable. How much of your Social Security benefits are taxed depends on your filing status and income (to calculate, visit: https://bit.ly/4zXhSQz). Note that part-time or contract work can push you into a higher tax bracket and make more of your Social Security benefits taxable. Contact us to discuss strategies for managing your tax exposure in retirement.
