Do you have to pay taxes after retirement?


Quick Answer

Retirees often have to pay income taxes, depending on the source and amount of their retirement income. Most government and private pension payments are taxable, as are withdrawals from 401(k) plans and some annuity payments, according to Kiplinger. Social Security benefits are taxable if beneficiaries exceed an income threshold.

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Do you have to pay taxes after retirement?
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Full Answer

Retirees also owe income tax on withdrawals from traditional Individual Retirement Accounts, although withdrawals from Roth IRAs are tax-exempt. The sale of stocks and real estate can trigger a capital-gains tax for retirees, Kiplinger notes. Savings accounts and certificates of deposit that pay interest also generate a tax bill for retirees.

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