taxable

The funds sent to you can go in any type of “nonqualified” or “taxable” account.

The two main numbers you’re looking at are ordinary income and total taxable income — commonly referred to as adjusted gross income or AGI.

“The following examples apply if you earned the taxable maximum in each year beginning at age 22 and start receiving benefits in 2025,” it adds.

The U.S. has a progressive tax system, meaning most people are taxed in multiple tax brackets, at rates that increase as their taxable pay rises past thresholds.

It offers stability, predictable income and reduced downside risk compared with private equity, while avoiding the tax penalty that weighs on it in taxable accounts.