In this episode, we dive into a common question: Does a 401(a) plan count as income? We explore how distributions from a 401(a) plan are treated for tax purposes and what you need to know about managing your retirement income.

When contributions are made to a 401(a) plan, they’re usually on a pre-tax basis, allowing you to defer taxes until you start withdrawing those funds. But once you begin taking distributions, those withdrawals are considered taxable income at both the federal and state levels.

For residents of Georgia, we’ll highlight a key tax benefit: if you're 62 or older, you may qualify for the retirement income exclusion, which lets you exclude up to $65,000 per person (or $130,000 for married couples) from taxable income. This can significantly reduce your tax burden, though it's important to remember that withdrawals must still be reported on your tax return.

Tune in to learn how 401(a) distributions impact your retirement income strategy, and find out how you can make the most of state tax benefits to maximize your retirement savings.

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