Quick question: Do you count tax-deferred income in your total income?

[imjustawarrior]

I define income as what goes on my income tax return.

For CC companies I just guestimate.

 

[Pointby2]

I have a little spreadsheet where I track the interest and dividends in all our brokerage accounts. But, it's just a number since it's not paid out, I can't spend it.

As far as income for credit cards, it's just a made up number.

 

[Amethyst]

My wife likes to point out that gains in any account aren't real $ (realized), unless I sell a stock. Until then, any gains or losses aren't income. They might add to your current net worth (or detract), but they aren't income unless you sell them, IMHO. For purposes of retirement, I consider anything I take from accounts income, whether it be the original invested amount, the gain, dividends, LTCGs, or STCGs, or RMDs. The IRS does too (except that original investment), and you could spend them (less taxes), or you could reinvest. If you reinvest, then for purposes of 'retirement income' for a credit company, they wouldn't count as income, though.

But, what about dividends and reinvested gains within your stock accounts? If the accounts are taxable, the IRS considers it income. Why would it not also be income inside your IRA/401K?

 

[Al18]

Because you can’t spend the assets without withdrawing from the account and paying taxes on it. Note dividends and capital gains are not a thing in a retirement account. You pay exactly the same amount of taxes from a retirement account, whether it was $20,000 from selling Apple stock (up 235% in the past 5 years) or $20,000 from selling Intel stock (lost 62% in the past 5 years).

 

[rk911]

But, what about dividends and reinvested gains within your stock accounts? If the accounts are taxable, the IRS considers it income. Why would it not also be income inside your IRA/401K?

Again, there is no wrong answer to your question.