The Motley Fool Discussion Boards
Investing/Strategies / Retirement Investing
|Subject: Re: Roth investing/withdrawing at 60||Date: 3/15/2012 4:33 PM|
|Author: 0x6a74||Number: 70369 of 74001|
as mentioned, IRA withdrawals increase the tax on SS (so RMDs kind of get taxed twice) and if big enough increase Medicare premiums..
Not there yet but for some SS is only a component of income so it's tax on income not just SS, right ?
distributions from trad.IRA or 401k (or similar) are ordinary income;
add that to taxable dividends, interest and pensions
add that to capital gains (i think)
and that total goes into a bizarre formula* such that if it's small enough, no tax on SS, if big enough, 85% of SS is taxable.
zat make sense?
form 1040, line 20 Worksheet
|Copyright 1996-2013 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|