Asked by Kamia Bryan on May 10, 2024
Verified
What is a good rule of thumb you should use when thinking about the taxability of retirement plan distributions?
Retirement Plan Distributions
Payments made from a retirement plan, which may include pensions, 401(k)s, or IRA distributions, and can be taxable or tax-free, depending on the plan.
- Gain insight into the taxation aspects of distributions from pension plans and annuities.
Verified Answer
CG
Cathy GallowayMay 12, 2024
Final Answer :
A good rule of thumb is: if the plan is funded with dollars that have not been taxed,the distributions will be taxed;if the plan is funded with already-taxed dollars,then some or all of the distributions will not be taxed.This rule of thumb is not always true,but it is a good starting point.
Learning Objectives
- Gain insight into the taxation aspects of distributions from pension plans and annuities.
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