Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 08-16-2013, 09:18 AM   #21
Recycles dryer sheets
Join Date: Jan 2010
Posts: 91
I think Steelyman said that his benefits are taxed as ordinary income, so he must not have gotten taxed when they were taken from him, right? You should only get taxed once.

Unless you live in PA when you contribute and then move to a state that does it the "regular" way. (PA does not let you reduce taxable income with trad 401K contributions... but they do not tax you on withdrawals when you retire.) But that's a complaint for another thread.

catccc is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-16-2013, 09:50 AM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 17,872
Originally Posted by catccc View Post
I think Steelyman said that his benefits are taxed as ordinary income, so he must not have gotten taxed when they were taken from him, right? You should only get taxed once. ...
Yes, you should only get taxed once - so if the contributions were pre-tax money (reduced your taxable earnings) then all distributions are included in taxable income but if the contributions were after-tax money then I think only a portion of the distributions are taxable since a portion of the distribution is a return of your already taxed contribution and the remainder is growth that has never been taxed (similar to annuity benefits from an annuity purchase with after-tax funds being only partially taxable income).

If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...60/35/5 AA
pb4uski is offline   Reply With Quote
Old 08-16-2013, 10:30 AM   #23
Thinks s/he gets paid by the post
steelyman's Avatar
Join Date: Feb 2011
Location: Triangle
Posts: 3,219
Yes, our contributions to the pension system (8% of salary) were taken off the top and not taxed. Now that I'm receiving the annuity, it is 100% taxable.


steelyman is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


All times are GMT -6. The time now is 01:48 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.