How Will 401 K Pension Plans Affect Retirement Income?

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   Steve Savant

   Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona

   401(k) plans are defined contribution retirement accounts that accumulate tax deferred and are taxable at at distributions as ordinary income at the effective tax bracket of the plan participant. Those 401(k) distributions are also included in the provisional income test for Social Security benefit taxation. So 401(k) income can effect Social Security.

   Answered on August 10, 2013

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