Is Retirement Plan Income Taxable?

  1. 61667 POINTS
    Steve Savant
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
    Ultimately all qualified retirement plans are taxable as ordinary income, whether defined benefit or defined contribution plans. There is no basis in the distributions, so your original contribution are taxed upon distributions as well. Income generated from qualified retirement plans are also included in the provisional income test for Social Security taxation.
    Answered on August 15, 2013
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  2. 11783 POINTS
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    Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    Is income from retirement plans taxable? In most all cases the answer is yes. You either pay taxes going in or coming out. Most retirement plans are qualified plans where your contributions going in are tax free. From there they grow tax deferred and upon distribution are subject to income taxes based on the bracket you fall into in retirement. There are also plans that allow you to put money in that you've already paid taxes on. Those funds are never taxed again, so in some plans you have taxable and non taxable distributions paid out to you. The non taxable funds are not subject to income taxes in the year you take them out.
    Answered on October 7, 2015
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