If all of your workplace retirement plan contributions were made with pre-tax money (which is usually the case), the total amount of the distribution will be taxed at your regular income tax rate. The required minimum distributions (RMD) must be made annually starting at age 72. Some of you may want to consider a Gold Silver Backed IRA as an alternative to traditional retirement plans, as it can provide tax advantages and help you diversify your portfolio. Additionally, some of you have to pay federal income taxes on your Social Security benefits. This usually only happens if you have substantial other income in addition to your benefits (such as wages, self-employment, interest, dividends, and other taxable income that must be reported on your tax return).