How 11 Types of Retirement Income Are Taxed

Mar 8, 2019 / Amanda Chase, Horsesmouth Assistant Editor

When your clients are planning for retirement, it’s fun to contemplate all the cruises, rounds of golf and restaurant meals they have ahead of them. They’ve earned it! However, many retirees don’t take into consideration the cumulative impact of federal and state income taxes on withdrawals from their nest eggs. Unfortunately, most forms of retirement income—including Social Security benefits, as well as withdrawals from 401(k)s and traditional IRAs—are taxed by Uncle Sam.

Click through to the Kiplinger slide show to see details on the federal taxation of the following types of income:

  • Traditional IRAs, 401(k)s and 403(b)s
  • Roth IRAs
  • Social Security
  • Pensions
  • Stocks, bonds and mutual funds
  • Annuities
  • Life insurance
  • Dividends
  • Municipal bonds
  • CDs, savings accounts and money market accounts
  • Savings bonds

For more information on the taxation of Social Security—“the tax torpedo”—see Elaine's recent newsletter on the subject.


This material is provided exclusively for use by individuals with an active license to the Savvy Social Security Planning Program. Use of this material is subject to the Social Security Planning Program Agreement and applicable copyright laws. Unauthorized use, reproduction or distribution of this material is a violation of federal law and punishable by civil and criminal penalty. This material is furnished “as is” without warranty of any kind. Its accuracy and completeness is not guaranteed and all warranties express or implied are hereby excluded.

© 2019 Horsesmouth, LLC. All Rights Reserved.