Appatite,
I am not a tax professional so take this for what it is worth...
Income Taxed:
Pensions - Completely taxable as ordinary income
TSP Withdraws - Completely taxable as ordinary income
Investment Income - Completely taxable as ordinary income
Investment Capital Gains - Taxed at the capital gain rate, does not bump
Investment Dividend Income - Currently, taxed at capital gain rate, does not bump?
Partial Income Taxed:
Social Security Income - Currently 1/2 of it is taxed once you exceed Alpo Meal Deal in other retirement income.
Taxed at Earning Point:
Saved Cash - Already taxed.
Roth Accounts - Already taxed.
Expect enhancements (political jiggering) to Social Security to promote more taxation. President Clinton opened up 1/2 of Social Security to taxation - in twenty years who knows.
If we get the joy of a 'wealth tax' than your saved cash will be taxed again. Maybe even your Roth accounts.
President Obama tried to tax dividend income as ordinary income in this last effort. Will he succeed in 2012?
So, to summarize, almost everything is income and will bump you toward a Progressive Heaven.
Originally Posted by
Appatite
Probably been asked and answered but by asking again and creating a dialogue, we all become more familiar with each other. So...
In a couple of decades I hope to retire. Let's see, I will have my pension, my wifes pension, saved cash and TSP withdraws. A few years later I will receive SS and then my wife will receive SS. There will also be investment income.
The question is, what out of these, creates taxable income and bumps me into higher tax brackets? Will SS affect income, if it still exists? Are pensions income?
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