Most pension income is funded with pretax income, so they are taxable when you receive the funds. IRA and 401(k) deferrals are generally taxed when distributions are made. Roth IRAs and Roth 401(k) deferral are made with after-tax dollars. Therefore, the withdrawals, including earnings, are tax free if the accounts are held for the required time. Tax planning for your retirement income and investments can ensure you’re not surprised by a cut to your income.