How Your Retirement Savings and Income Are Taxed | Kiplinger

The beautiful part of VA entitlements is they are tax free. Let's assume that my pension is $3000 a month and my VA entitlement is $3000 a month. The total income for the year is $72,000, but your taxable income is $36,000 a year. It reduces your taxes and helps you to be in a lower tax bracket. You should get a nice tax return.

I break out In a rash by the mere mention of taxes!!!

Excellent primer for retirement planning. One point of deviation: my retail life had a defined benefit plan (traditional pension) and 401k (defined contribution). Upon leaving to go to prison, :-)) I was able to lump sum roll the retail defined benefit into the retail 401k, then roll the combined 401k into the new company's 401k. Didn't get out of paying taxes on the lump sum withdrawal, but did defer them. The article is correct. At some point you need a financial slick willy to coach you on broken field running.