I have a stock retirement pension plan with my previous company and I was wondering if the dividends from the plan are taxed at the same rate as regular income. I am retired now and collecting social security.

Terry Says:

All money that comes out of a “qualified” (pre-tax) retirement plan is considered ordinary income. ┬áSo yes, the dividends are considered part of the assets of the plan and mixed with the assets of the plan, and ALL withdrawals are taxed as ordinary income. ┬áSince there is no special taxation benefit for dividends on stocks these days, it really doesn’t matter how the money in the plan is generated.