Six Different Types Of Tax Exempt Retirement Income

Image Source: Google By: Savardekar

Roth Withdrawals: A Roth account is the easiest way to avoid paying taxes on your retirement money.

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Inheritances: Many Americans get an inheritance at some time in their lives, and it can often be a nice boost to current retirement funds.

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Municipal Bond Income: Municipal bonds are tax-exempt at the federal level, which means that investors do not have to pay federal taxes.

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HSA Withdrawals: Contributions to an HSA are tax deductible, and earnings in the account grow tax-free.

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Social Security Payments: If you're simply living off your Social Security retirement benefits, they are tax-free.

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Life Insurance Proceeds: Life insurance proceeds are tax-free to the receiver, at least when received in a lump sum rather than in instalments.

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