AboutDavid M Iannopollo Expertise I am a professional financial advisor who can assist you with answers on mutual funds, annuities, IRA's, rollovers, qualified and non-qualified retirement plans, retirement planning, educational planning, life, disability and LTC insurances.
Experience I have over 20 years experience in the business and financial world.
Question QUESTION: I am retired (age 61) and anticipate taking social security at age 62. Will the withdrawls I take from my IRA which has already had social security taken out during my working days have an affect on my social security benefit. I realize I will have to pay taxes on a portion but will the actual social security benefit be reduced?
ANSWER: Hi Chuck,
Because you have already payed SS tax as you mentioned, this should not decrease your benefit. Hope this helps!
Dave
---------- FOLLOW-UP ----------
QUESTION: Thanks for your answer Dave. It is very helpful. I realize I should have been a little more precise. Everything from my 401K (tax sheltered) has had social security taken out. However, I chose to take my retirement as a lump sum payout. All of this was rolled over to an IRA. I assume that is none subject to social security but regular income tax as I make withdrawals. Am I correct? Thanks,
Chuck
Answer Hi Chuck,
Your correct. Withdrawals from your IRA rollover are not subject to SS tax but they are subject to ordinary income tax. Since these withdrawals are not considered "earned income" it will not reduce your SS benefit. I hope this is clearer now. Good luck!
