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Bill
Bill, Enrolled Agent
Category: Tax
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Experience:  EA, CEBS - 35 years experience providing financial advice
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Question is if I use An IRA or 401k to fund the buy back of

Resolved Question:

Question is if I use An IRA or 401k to fund the buy back of withdrawing my social security application am I subject to any income taxes. I started to draw social security in 2001 at age 62
Submitted: 7 years ago.
Category: Tax
Expert:  Bill replied 7 years ago.

If you take distributions from an IRA or 401(k) to payback social security benefits that you previously received the distributions will still be taxable as there is no exception for avoiding income taxes for this reason. Actually, there is no exception for avoiding income taxes on any distributions from a retirement plan for any reason unless the distributions represent a recovery of after-tax contributions that you previously made or you are age 70 1/2 or older and the distributions are coming from an IRA and are being made directly to a charity.

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