Do I Have to Pay Taxes on Survivors Benefts?

Q: When can I withdraw from my 403b without paying taxes?

You can withdraw from a 403(b) without paying taxes when you reach age 59 and a half. If you withdraw funds before this age, you may incur taxes and an additional 10% early withdrawal penalty unless you qualify for an exception. Always check the specifics of your plan and consult a tax professional for personalized advice.

Q: What retirement accounts allow tax-free withdrawals?

Roth IRAs allow tax-free withdrawals if you meet certain conditions, such as being at least 59 and a half years old and having the account for at least five years. Health Savings Accounts (HSAs) can also provide tax-free withdrawals if used for qualified medical expenses. Always review the specific rules for each account type.

Q: What income is not taxable after retirement?

Certain types of income may not be taxable after retirement, including Social Security benefits, provided your total income is below certain thresholds. Additionally, withdrawals from a Roth IRA are not taxable if conditions are met. Always consider your overall income and consult a tax professional for specific guidance.

Q: What type of retirement fund is not subject to taxes upon withdrawal?

Roth IRAs are not subject to taxes upon withdrawal of contributions and qualified earnings, provided you meet the age and holding period requirements. In contrast, traditional IRAs and 401(k)s typically incur taxes upon withdrawal. It's essential to understand the rules governing each account type.

Full question:

I retired 5/1/10, started to receive Widows B. , Is this taxable? I made less than 25,000 when working. Pulled money out of IRA the past year, do this matter?

Category: Social Security
Date: 04/07/2025
State: Florida

Answer:

According to the Social Security Administration, taxes may have to be paid on social security benefits, depending on your benefits, income level and tax filing status. As of May 2010, the SSA noted that less than 1/3 of social security recipients pay taxes on their benefits.

Whether your IRA withdrawal is taxable depends on whether it is a traditional or Roth IRA. Withdrawals from a traditional IRA are taxable, unlike a Roth IRA. However, withdrawals before age 59 ½ are subject to a penalty.

Please see also:

http://www.ssa.gov/pubs/10084.html
http://www.irs.gov/faqs/faq/0,,id=199773,00.html
http://beginnersinvest.about.com/cs/iras/a/aairafees.htm

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Which retirement fund payment is generally not taxable?

Withdrawals from a Roth IRA are generally not taxable, provided certain conditions are met. Contributions to a Roth IRA are made with after-tax dollars, meaning you don't pay taxes on the money when you withdraw it in retirement. However, to avoid taxes on earnings, you must be at least 59 and a half years old and have held the account for at least five years.

When can I withdraw from my 403b without paying taxes?

What retirement accounts allow tax-free withdrawals?

At what age is IRA withdrawal tax-free?

Generally, you can withdraw from a traditional IRA without penalty at age 59 and a half. However, withdrawals are subject to income tax. For a Roth IRA, you can take tax-free withdrawals of contributions at any age, but earnings are tax-free only after age 59 and a half, provided the account has been open for at least five years.