Retirement taxes

[stfuqua]

Hello,

My wife and I retired late last year so this will be our first full year of retirement. We have pension income and some 401k withdraws.  I suspect these incomes are both taxed as normal income at the standard income rates based on the bracket we fall into is that correct?  What should we expect?

[Anonymous]

Hi,

Here is an article regarding retirement withdrawals, and at what age you are permitted on doing so:

https://turbotax.intuit.com/tax-tips/investments-and-taxes/what-is-form-4972-tax-on-lump-sum-distrib... 

The article also discusses the penalties.

Retirement withdrawals that are subject to income tax, the rates can very based on several factors, including the type of retirement account and the individual's overall income. In general, withdrawals from traditional retirement accounts, such as traditional IRAs or 401(k)s, are taxed at ordinary income tax rates. The tax rates for ordinary income depend on the individual's tax bracket.

Withdrawals from Rota IRAs or 401(k)s are typically tax free, as long as certain criteria are met.

Here is an article I found regarding Roth IRA withdrawal rules: https://www.schwab.com/ira/roth-ira/withdrawal-rules#:~:text=Withdrawals%20must%20be%20taken%20after... 

Thank you,

John 

CPA