2007-08-07 07:43:32 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
regular federal (and state as well) income taxes. The IRS would have no way of knowing how much of the retirement income you receive each year would be from cap gains, interest, dividends, other, so they tax it at regular tax rate.
2007-08-07 07:46:49 · answer #1 · answered by Anonymous · 1⤊ 0⤋
The above answer is correct for federal taxes. State taxes depend on the state. Illinois, for example, does not (at present) tax retirement plan income (social security, IRA, 401k, or pension).
2007-08-07 14:51:27 · answer #2 · answered by CarVolunteer 6 · 0⤊ 0⤋
Withdraws, they are subject to taxes. If you are older than 59 1/2 you will not incur in a penalty(10%), for younger people. On the amounts you take out, you have to pay taxes, income, at your then, Tax bracket.
2007-08-07 14:54:19 · answer #3 · answered by formenow 4 · 0⤊ 0⤋
Regular income taxes.
2007-08-07 16:09:17 · answer #4 · answered by Judy 7 · 0⤊ 0⤋