I've got so many spreadsheets projecting things for retirement (4 years away) that I need a spreadsheet to keep track of them all.
I have a projected income and budget spreadsheet and I just ran all the numbers through Turbo Tax as if I had just completed my first year of retirement. It seems I greatly overestimated the tax I will owe.
Can someone confirm this is correct?
1) Withdrawals from 401k and 457b, I pay tax as if it is regular income.
2) Withdrawals from Taxable accounts I pay tax on the capital gains.
3) Withdrawals from Roth IRA, I pay no tax?
4) Dividends on Taxable accounts I pay tax on but not on dividends within a 401k or 457b.
I think my problem came in that I projected paying tax on the entire amount on withdrawals from my Taxable accounts...not just the capital gains from those sales.