will I have to pay tax on my pension when I retire
2007-10-19 09:37:01 · 5 answers · asked by DONNA S 1 in Business & Finance ➔ Taxes ➔ United States
It depends on what kind of pension you have. If it is an annuity you'll have to pay income taxes on it. If it is a 401K you will have to pay taxes on it because the money that was put into it was deducted from pre-taxed income. If it is a Roth 401K you don't have to pay taxes on it because the money that was put into it was from taxed income. Go to a good financial adviser and have him/her analyze your retirement funds. Then you'll know for sure.
2007-10-19 09:49:10 · answer #1 · answered by mollyflan 6 · 0⤊ 0⤋
Pensions are generally included in taxable income. If your pension is below the filing requirement, you will pay no tax. For a single taxpayer over age 65, for 2007 this amount is $10,000, assuming this is your only taxable income (disregarding SS benefits).
2007-10-19 10:04:56 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
Yes, on most if not all of it.
On some pensions, there is an after-tax employee contribution. This portion gets paid tax free but it usually a small percentage of the entire amount.
2007-10-19 09:46:40 · answer #3 · answered by Wayne Z 7 · 1⤊ 0⤋
yes you will pay tax on a pension...however, there are certain types of pension where you are already being taxed on....speak to a financial advisor or a CPA...because I do not know what type you have.
2007-10-19 09:41:43 · answer #4 · answered by mailjunkie123 3 · 0⤊ 0⤋
I sure do.
2007-10-19 10:29:37 · answer #5 · answered by Anonymous · 0⤊ 0⤋