thefed
Thinks s/he gets paid by the post
- Joined
- Oct 29, 2005
- Messages
- 2,203
Sooo...of all people, MY grandpa...MY grandfather is asking me to help him through is plans for retirement. He's 70, his body isnt working too well, and hes afraid to talk about it with my grandma...very set in her ways.
Basically, I'm a bit confused about the tax aspect of the whole thing. He has 1200/mo coming from soc security. 1600/mo from his city pension. And 125k in a 401k. How are taxes accounted for?
Does soc security take taxes out, or do you pay @ the end of the year? Does the figure he got from soc security saying "you will be recieving 1200/mo" mean that is before or after taxes?
Does a pension usually deduct them for you, or do you pay at the end of the year? Same thing... i assume his figure of 1600 he'll get is before tax.
401k withdrawals I assume are taxed at the end of the year, at his rate when you add in the pension and soc security. Correct? Is it typical, or even possible, to simply use the 401k in april to come up with the previous years tax $....and then pay those taxes next year...and so on?
Basically looking for some good general info on taxes for him at this stage in his life. Maybe a good link or 2?
Thanks
Basically, I'm a bit confused about the tax aspect of the whole thing. He has 1200/mo coming from soc security. 1600/mo from his city pension. And 125k in a 401k. How are taxes accounted for?
Does soc security take taxes out, or do you pay @ the end of the year? Does the figure he got from soc security saying "you will be recieving 1200/mo" mean that is before or after taxes?
Does a pension usually deduct them for you, or do you pay at the end of the year? Same thing... i assume his figure of 1600 he'll get is before tax.
401k withdrawals I assume are taxed at the end of the year, at his rate when you add in the pension and soc security. Correct? Is it typical, or even possible, to simply use the 401k in april to come up with the previous years tax $....and then pay those taxes next year...and so on?
Basically looking for some good general info on taxes for him at this stage in his life. Maybe a good link or 2?
Thanks