Posted by: Garcia & Cuadra, PA | August 11, 2015

Will You Be Taxed After Retirement?

Tax Advisor | Taxed After RetirementYou’ve been saving for years, making sure to put every extra dollar into your retirement planning account, and the time has finally come for you to retire. Whether or not you hired a tax advisor in Tampa to help you with this process, many retirees are shocked to find out that they are still subject to taxes.

What taxes can you expect after retiring?

  1. Taxable accounts. Any profits you make from stocks, investments, mutual funds, or bonds are taxed at various rates, depending on how long you have had them. Most taxpayers can expect to see a rate of 15%, but if you have had the assets for over a year at a long term capital gains rate, you can expect to see 10% or less.
  2. Roth IRA. As long as you are more than 59 years old and have had the Roth IRA open for more than 5 years, withdrawals from this account are tax free! Because of this, many Tampa tax advisors will recommend pulling from this account last.
  3. Social Security. Finding out their Social Security benefits can be taxed is a big surprise to many retirees. You being taxed will depend on provisional income, which is your gross income combined with any tax free interests and 50% of your benefits. Depending on the provisional income and whether or not you are married, you can expect your benefits to be taxed 50-85%.
  4. Pensions. Any payments you receive from government or private pensions will be taxed at your typical income rate.

Garcia and Cuadra are Your Tax Advisors

If you are looking for a tax advisor in Tampa to help with your retirement planning, be sure to talk to them about what fees you will be subject to. This can make a huge difference when calculating how much you need to save!

For over 35 years, Garcia and Cuadra have been working hard to help individuals and companies in the Tampa area plan for the future, help with foreign accounts and any litigation, keep up with bookkeeping services, and more! If you need the help of a qualified and professional tax advisor, call them today at 813-415-2431.

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