Originally Posted by catccc
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).