How Your Retirement Savings and Income Are Taxed

From 401(k)s (fully taxed!) to Social Security (partially taxed) to Roth IRAs (tax free!) – it’s good to know what kind of tax bills you’ll face in the future. Here’s the tax breakdown on 12 different types of assets.

An older man sits on a beachball by the ocean dejectedly.
(Image credit: Getty Images)

There is one commonality that everyone shares in retirement – a price tag. Your price tag may be different from your neighbors’ or your friends’, but we all have one. That price tag or cost will depend on your goals and the lifestyle you desire to have in retirement. It also factors in housing, utilities, health care expenses, inflation, taxes and other expenses.

Building a healthy nest egg to live off of in retirement is probably one of the biggest challenges you may face, especially when you have competing priorities.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

This article is for informational purposes only. Nothing herein constitutes tax or investment advice. The information provided is as of the date produced, and over time may become inaccurate due to changing laws and regulations. Urban Wealth Management Group, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Urban Wealth Management Group, LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered unless a client service agreement is in place. Urban Wealth Management Group, LLC provides links for your convenience to websites produced by third-party providers. Clicking hyperlinks will take you to their website that is not affiliated with Urban Wealth Management Group, LLC. Urban Wealth Management Group, LLC is not responsible for errors or omissions in the material on third party websites, and does not necessarily approve of or endorse the information provided. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from the use of those websites.


This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Derenda King, CFP®, CSLP®
Financial Adviser, Urban Wealth Management

Derenda King is a CERTIFIED FINANCIAL PLANNER™ professional, Certified Student Loan Professional (CSLP®) and financial adviser with Urban Wealth Management. She is also the owner of Collegiate Financial Coach, LLC, which provides financial coaching to families with college-bound students who need assistance with developing a college funding plan and to individuals seeking strategies for repaying their student loan debt. Prior to becoming an adviser, Derenda worked in higher education, and she is still an educator at heart. She provides comprehensive, holistic financial planning services, with an added focus on late-stage college planning, and is passionate about educating, empowering and equipping individuals with the knowledge to make more informed decisions about their money.