Ch 3: Retirement Income Taxation

About This Chapter

Boost your confidence ahead of an exam by studying this chapter on retirement income taxation. Our short lessons clearly outline the topics you need to know in order to supplement what you're learning in class or to help you study for an upcoming exam.

Retirement Income Taxation - Chapter Summary

In this helpful chapter, our instructors present retirement income taxation. You'll study the benefits and rules of traditional and Roth IRAs, the limits of a Roth IRA conversion and the options available in a qualified retirement plan. Additional topics include NUA retirement accounts and how special types of retirement income are taxed. This chapter is designed to help you:

  • Differentiate between a Roth IRA and a traditional IRA
  • Give an example of a non-qualified retirement plan
  • List the rules of a rollover IRA
  • Outline the tax considerations on retirement income
  • Detail the required minimum distributions for a retirement savings account
  • Explain how loans from 401(k)s and other plans are taxed
  • Discuss the benefits associated with social security and railroad retirement
  • List retirement income withdrawal strategies

Our learning materials are made up of easy-to-follow lessons and multiple-choice quizzes you can review as many times as you need to. We've made our tools accessible 24 hours a day on your mobile device or computer so you'll have flexible study options. If you require any assistance along the way, reach out to one of our professional instructors for help.

11 Lessons in Chapter 3: Retirement Income Taxation
Test your knowledge with a 30-question chapter practice test
Traditional IRA: Definition & Benefits

1. Traditional IRA: Definition & Benefits

This lesson covers the definition of Traditional Individual Retirement Account (IRA), features of a traditional IRA and its benefits for retirement planning and taxes.

What Is a Roth IRA? - Definition, Rules & Benefits

2. What Is a Roth IRA? - Definition, Rules & Benefits

Explore the concept of a Roth IRA - an account that can potentially lead to tax-free growth. This lesson will define a Roth IRA and explain the associated rules and benefits.

Traditional IRAs vs Roth IRAs

3. Traditional IRAs vs Roth IRAs

Many working people have what are called IRAs. In this lesson, you'll learn about the two major types of IRAs and the different tax benefits that each brings. You'll also learn what needs to be reported on tax returns and which form to use.

What is a Roth IRA Conversion? - Rules & Limits

4. What is a Roth IRA Conversion? - Rules & Limits

Explore the concept of a Roth IRA conversion - a concept that can potentially turn future taxable income into tax-free income. This lesson will define a Roth IRA conversion and explain the associated rules and limits.

What is a Qualified Retirement Plan? - Rules & Options

5. What is a Qualified Retirement Plan? - Rules & Options

This lesson includes an overview of qualified retirement plans, including explanations of the two types (defined benefit plan and defined contribution plan), rules, and options regarding withdrawals, and penalties.

Non-Qualified Retirement Plan: Types & Examples

6. Non-Qualified Retirement Plan: Types & Examples

In this lesson we will define and give examples of the four common types of non-qualified retirement plans available to corporate executives and other highly compensated employees.

What is a Rollover IRA? - Definition, Rules & Sample

7. What is a Rollover IRA? - Definition, Rules & Sample

This lesson will define a rollover IRA, or an individual retirement account. This lesson will also explain the rules associated with a rollover IRA and a sample will be given.

Retirement Income: Tax Considerations & Reporting

8. Retirement Income: Tax Considerations & Reporting

Some retirees think that when they retire from full-time work they retire from paying taxes. They couldn't be more wrong! Let's review some of the primary sources of retirement income and the tax implications for each.

Required Minimum Distributions for Retirement Savings Accounts

9. Required Minimum Distributions for Retirement Savings Accounts

In this lesson we will review when a retiree must withdraw funds from a retirement savings account, and how much they must withdraw, as part of the required minimum distributions mandated by law.

Social Security & Railroad Retirement: Benefits & Taxation

10. Social Security & Railroad Retirement: Benefits & Taxation

Social Security has been around since 1935 as a stable source of income for older Americans. This lesson will show you how benefits are calculated and how much of your Social Security and Railroad Retirement income might be taxable.

Retirement Income Withdrawal Strategies

11. Retirement Income Withdrawal Strategies

In this lesson, we will discuss various retirement income withdrawal strategies that can be used to generate the most income and minimize the impact of taxes.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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