What types of retirement income are taxable?
Most types of retirement income are taxable, though the taxable amount depends on the type of retirement account and how it was funded. In general, distributions from accounts funded with pre-tax dollars are taxable, while qualified distributions from accounts funded with after-tax dollars aren’t.
Generally, if you receive a retirement plan distribution, you’ll receive Form 1099-R. We use the info from your 1099-R and your answers to a series of questions to determine the taxable amount of your income. We've got help for entering your 1099-R.
Common types of retirement income that are generally taxable include:
Traditional IRA and 401(k) distributions made with pre-tax dollars
403(b) and 457(b) plan distributions
SEP IRA distributions
SIMPLE IRA distributions
Inherited Traditional IRA distributions
Thrift Savings Plan distributions
Pension income
Annuity income
The following types of income could potentially be taxable:
Social Security income: The taxable amount depends upon the amount of income earned during the year. See this article for more details on Social Security income.
Roth IRA distributions: If you make withdrawals before reaching 59 ½ years old and it hasn’t been at least 5 years since you first set up and contributed to the Roth IRA, the investment earnings portion may be taxable.
What types of retirement income aren’t taxable?
Qualified withdrawals of Roth IRAs and Roth 401(k)s funded with after-tax income
Distributions that are rolled over into another retirement account within 60 days. See this article on how to enter this into TurboTax.
