How is "income" defined ?
I will be retiring in a few years and I am just wondering how income is defined and measured at that point. I saw a demographic that the average household income in TV was 93K. My retirement plan is made up of 3 major components. They are my pension, Social Security and a 401K. Would my income be the total of the pension, social security and whatever I decide to take out of my 401 K per year ? Or, would it also include any interest my 401K earned that particular year when they are measuring household income ? I know I still wouldn't have to pay tax on the interest until withdrawal so I know from an IRS poit of view it doesn't count as income until distributed, but when they put together these demographics, do they include that interest ?
|