How 8 Types of Retirement Income Get Taxed

Dividends

If you want to add dividends to your income list as you approach retirement, you should know that not all of them are taxed the same. The most common type, qualified dividends will be taxed at long-term capital gains. But then you have non-qualified dividends, which will be taxed at ordinary income tax rates.

In order for a dividend to be treated as “qualified”, shareholders must hold stock for a certain period of time. It’s only after this set amount of time that you’ll be able to take advantage of capital gains.

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