Is the Retirement Income From an Employer Considered Taxable Income?


Quick Answer

Annuities, pensions, Roth IRAs, tax-deferred accounts and other sources of retirement income from employers are calculated at different tax rates, the IRS notes. Some are subjected to lower tax rates, are tax-free or are taxed as ordinary income.

Continue Reading
Related Videos

Full Answer

If the taxpayer did not pay anything into the pension plan, pension payments are fully taxable, notes the IRS. Tax-deferred funds, which come from pre-tax contributions, are not considered to originate from taxpayers' payments. If the taxpayer paid for or contributed to the pension, the IRS has a calculation to determine how much of the income received is taxable. Pension income is only tax free in 12 states, U.S. News reports.

Learn more about Taxes

Related Questions