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taxmanrog
taxmanrog, Certified Public Accountant (CPA)
Category: Social Security
Satisfied Customers: 612
Experience:  Licensed CPA, MA, MST with 31 years' experience. Teach Accounting and Tax courses at Masters level.
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Does having an annunity payment affect the amount of social

Customer Question

Does having an annunity payment affect the amount of social security received at full retirement?
JA: These retirement benefits are supposed to help us but they can be so complicated! The Retirement Expert will help you get the most benefits propertly. Please tell me more, so we can help you best.
Customer: I have a defined benefit pension that was sold to a different company and now it is an annuity payment that I will receive once I retire in the form of a monthly payment until death.
JA: Is there anything else the Retirement Accountant should be aware of?
Customer: I am presently working and not collecting any money except a paycheck at this time.
Submitted: 4 months ago.
Category: Social Security
Expert:  taxmanrog replied 4 months ago.

Welcome to Just Answer! Thank you for giving me the opportunity to assist you! I will do my best to help!

Expert:  taxmanrog replied 4 months ago.

Retirement benefits, including annuities, 401(k) plans, IRAs, etc., do not affect the amount of Social Security that you will receive at retirement. The only thing that affects the amount of Social Security benefits that you receive are wages that you earn if you continue to work and you are less than full retirement age.

Where outside income, such as pensions, annuities, IRA distributions, etc., will affect you is they can change the amount of Social Security that is taxable when you start collecting. If your adjusted gross income (not including Social Security) plus 50% of your Social Security benefits plus any tax-free interest (from municipal bonds) is between $25,000 and $34,00 on a single return or between $32,000 and $44,000 on a joint return, your Social Security becomes partially taxable. Depending on your income, up to 85% of your benefits can be taxed.

I hope this answers your question! If you have any more, please feel free to ask and I will be happy to answer.

Thanks! Have a great week!

Roger

Expert:  taxmanrog replied 4 months ago.

Hi! I just noticed that this question remains open on my side. Can you please rate me so that this question can be closed?

Thanks!

Roger