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Q: Is the civil service retirement system taxed in NC?
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Do retired teachers pay income tax in Arizona?

Yes. Social Security and Railroad Retirement benefits are exempt. Up to $2,500 total of military, civil service, and Arizona state/local government pensions are also exempt. All out-of-state government pensions are fully taxed.


What are the differences between pre-tax and Roth contributions in retirement accounts?

The main difference between pre-tax and Roth contributions in retirement accounts is how they are taxed. Pre-tax contributions are made with money that has not been taxed yet, so you will pay taxes on the money when you withdraw it in retirement. Roth contributions are made with money that has already been taxed, so you won't have to pay taxes on the money when you withdraw it in retirement.


What is the difference between pre-tax and Roth contributions in retirement savings accounts?

The main difference between pre-tax and Roth contributions in retirement savings accounts is how they are taxed. Pre-tax contributions are made with money that has not been taxed yet, so you will pay taxes on the money when you withdraw it in retirement. Roth contributions are made with money that has already been taxed, so you won't have to pay taxes on the money when you withdraw it in retirement.


What is the difference between pre-tax contributions and Roth contributions when it comes to retirement savings?

The main difference between pre-tax contributions and Roth contributions for retirement savings is how they are taxed. Pre-tax contributions are made with money that has not been taxed yet, so you will pay taxes on the money when you withdraw it in retirement. Roth contributions are made with money that has already been taxed, so you won't have to pay taxes on the money when you withdraw it in retirement.


If you are on a disability retirement pension from government service which is not taxed will social security income be affected?

Yes it could affect the amount of your SSB that could become taxable income on your 1040 income tax return.


What are the differences between pretax contributions and Roth contributions in terms of retirement savings?

Pretax contributions are made with money that has not been taxed yet, so you pay taxes on the money when you withdraw it in retirement. Roth contributions are made with money that has already been taxed, so you don't pay taxes on the money when you withdraw it in retirement.


Will you be taxed on withdrawl from your 401k at age 65?

Yes, withdrawals from a 401k are taxed as ordinary income. The tax treatment will depend on your total income in retirement and current tax laws.


What is the difference between pre-tax contributions and Roth contributions in terms of retirement savings?

Pre-tax contributions are made with money that has not been taxed yet, so you don't pay taxes on the amount you contribute until you withdraw it in retirement. Roth contributions are made with money that has already been taxed, so you won't pay taxes on the withdrawals in retirement.


What is the difference between after tax 401k contributions and Roth contributions?

The main difference between after-tax 401k contributions and Roth contributions is how they are taxed. After-tax 401k contributions are made with money that has already been taxed, so you won't pay taxes on that money when you withdraw it in retirement. Roth contributions are made with money that has not been taxed yet, so you won't pay taxes on the withdrawals in retirement.


What is a Roth IRA and how can one go about investing in one?

IRA stands for individual retirement account. A Roth IRA is a retirement account that you put money into in order to invest. The money you put in has already been taxed on your income tax returns. You put money in, invest it, it grows(hopefully), and when you take it out at retirement, the gains on your investments don't get taxed. If you take it out before retirement, however, there are tax penalties, so don't take it out. You can get a Roth IRA for free from most banks and online stock trading companies. Roth IRA's are different from Traditional 401k's in that you put money in a Traditional 401k through your employer pre-tax and the gains get taxed when you take it out at retirement.


Do Florida resident's retirement pay get taxed?

Florida does not have a state income tax, so retirement pay, including pensions and Social Security benefits, is not taxed at the state level. However, federal income tax may still apply depending on the amount of retirement income and other factors.


What are the differences between pre-tax, Roth, and after-tax 401(k) contributions and how do they impact retirement savings?

Pre-tax 401(k) contributions are made with money that has not been taxed yet, reducing your taxable income now but requiring taxes to be paid when you withdraw the funds in retirement. Roth 401(k) contributions are made with after-tax money, so withdrawals in retirement are tax-free. After-tax 401(k) contributions are made with money that has already been taxed, and only the earnings are taxed upon withdrawal. Each type of contribution has different tax implications that can impact the amount of retirement savings you ultimately have.