Hi @Sheri12,
Thank you for your question!
The IRS has a great tool that help one determine whether or not their pension is fully taxable; you can find it here: https://www.irs.gov/help/ita/is-my-pension-or-annuity-payment-taxable.
Unfortunately, there is no age that a taxpayer can reach that renders a pension non-taxable based on that fact alone.
Generally, pension payments are fully taxable if any of the following situations apply:
- You didn't contribute any after-tax amounts or aren't considered to have contributed any after-tax amounts for your pension or annuity
- Your employer didn't withhold after-tax contributions from your salary, or
- You received all of your after-tax contributions (your investment in the contract) tax-free in prior years
Please see https://www.irs.gov/taxtopics/tc410 for a more thorough discussion.
Please let me know if I can be of further assistance, and thanks for participating in our ask the experts event!
