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Old 03-14-2019, 11:37 AM
 
68,575 posts, read 69,290,196 times
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Quote:
Originally Posted by NewbieHere View Post
It ties back to on poster who posted that they might not give you SS if you have large retirement account. I said that’s already in effective.
it still is not apples to apples . it can be any taxable income and your ss gets taxed on up to 85% of it .. the rmd's are just taxes you delayed paying so that in itself has nothing to do with means testing . it can be said i am not getting any interest on my money because i owe taxes on my rmd's and it wipes out the interest .
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Old 03-14-2019, 01:57 PM
 
Location: Ohio
18,938 posts, read 13,806,051 times
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Quote:
Originally Posted by NewbieHere View Post
It depends what else you have as income. Right now you can say itís a wash. The tax is equivalent to the SS.
It's not a wash.

You can pay your taxes monthly, quarterly, at the end of the year or before the April 15 deadline. If you ask the IRS to withhold taxes for purposes of filing a return before the April 15 deadline, you're limited to 7%, 10%, 12% or 22%.

The IRS will only withhold those exact amounts.

If you choose 10%, but end up in the 7% bracket, you'll get a refund, and if you fall into the higher brackets you'll owe taxes.

But, even at 12%, you're only paying $1,390 if 50% (of $32,172) of your benefits are taxed.

It's not like it's a lot of money.
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Old 03-14-2019, 02:18 PM
 
Location: SoCal
11,797 posts, read 5,620,108 times
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Quote:
Originally Posted by mathjak107 View Post
it still is not apples to apples . it can be any taxable income and your ss gets taxed on up to 85% of it .. the rmd's are just taxes you delayed paying so that in itself has nothing to do with means testing . it can be said i am not getting any interest on my money because i owe taxes on my rmd's and it wipes out the interest .
I think you made my point. Your SS is already limited if you have other assets, whether itís retirement account or not.
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Old 03-14-2019, 02:19 PM
 
Location: SoCal
11,797 posts, read 5,620,108 times
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Quote:
Originally Posted by Mircea View Post
It's not a wash.

You can pay your taxes monthly, quarterly, at the end of the year or before the April 15 deadline. If you ask the IRS to withhold taxes for purposes of filing a return before the April 15 deadline, you're limited to 7%, 10%, 12% or 22%.

The IRS will only withhold those exact amounts.

If you choose 10%, but end up in the 7% bracket, you'll get a refund, and if you fall into the higher brackets you'll owe taxes.

But, even at 12%, you're only paying $1,390 if 50% (of $32,172) of your benefits are taxed.

It's not like it's a lot of money.
It’s not about IRS withholding. My tax is equal to my husband’s SS. That’s what I meant by a wash. If we don’t have other income. We pay nothing. The benefit is a wash.
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Old 03-14-2019, 02:32 PM
 
68,575 posts, read 69,290,196 times
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Quote:
Originally Posted by NewbieHere View Post
It’s not about IRS withholding. My tax is equal to my husband’s SS. That’s what I meant by a wash. If we don’t have other income. We pay nothing. The benefit is a wash.
i still don't get your point . the income taxes we paid a year when we both worked were more than my wife made because of our investments . taxes can always be more in total then the items we cherry pick out individually . .
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Old Yesterday, 07:36 AM
 
12,856 posts, read 6,731,501 times
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Quote:
Originally Posted by NewbieHere View Post
It ties back to on poster who posted that they might not give you SS if you have large retirement account. I said thatís already in effective.

Not really. Married, the 12% tax bracket extends to a bit over $100K AGI. At that income level, Social Security is 85% taxed. You're paying less than 10% effective Federal income tax on that Social Security check. If your check is $30K per year, you're putting $27K of it in your pocket. You'd barely feel the income tax. That's a far cry from "they might not give you SS".
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Old Yesterday, 09:52 AM
 
Location: SoCal
11,797 posts, read 5,620,108 times
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Quote:
Originally Posted by GeoffD View Post
Not really. Married, the 12% tax bracket extends to a bit over $100K AGI. At that income level, Social Security is 85% taxed. You're paying less than 10% effective Federal income tax on that Social Security check. If your check is $30K per year, you're putting $27K of it in your pocket. You'd barely feel the income tax. That's a far cry from "they might not give you SS".
You didnít read the part that they have large retirement account. 12% tax bracket is at $77,900 for 2018. Not just SS income alone. I wish I can say we barely feel the income tax. Right now tax is the highest item in our retirement budget.
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Old Yesterday, 12:28 PM
 
18,291 posts, read 13,001,967 times
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Quote:
Originally Posted by NewbieHere View Post
You didnít read the part that they have large retirement account. 12% tax bracket is at $77,900 for 2018. Not just SS income alone. I wish I can say we barely feel the income tax. Right now tax is the highest item in our retirement budget.
Income tax isnít much different in retirement other than SS being exempt or partially exempt from federal income tax. If federal income tax is the largest item in your retirement budget you must not have much else to spend on. Is your effective rate below 15% ?
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Old Yesterday, 12:43 PM
 
25,057 posts, read 32,119,182 times
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Quote:
Originally Posted by NewbieHere View Post
They already do, people who save large retirement account take RMDs at age 70, the bigger your RMD, the more tax you pay on top of your SS. My husband pays a lot of tax now, SS is just a wash.
So, if you did not receive any SS benefit payment at all - your resulting after-tax income would be the same?
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Old Yesterday, 01:09 PM
 
4,691 posts, read 11,786,598 times
Reputation: 3230
Quote:
Originally Posted by charlygal View Post
For those that don't believe in a retirement crisis, what are your views on current wages? All these comfortable, well to do retirees had to fund all this "abundance" somehow.
I don't believe that we are in a retirement "crisis" and I think current wages are pretty solid.
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