I have a Retirement Plan
where FICA is being applied to it. I requested a reason and they sent me the following response-after I sent them a copy of my Retirement Plan which they didn't have.
Their response was:The old NQ employer funded retirement plan that you inquired about is covered under the General Timing rule and taxed when paid.
Only the employee funded NQDC plan administered with ING is taxed for FICA/Med in the year of service under the Special Timing Rule.
Reg §31.3121(v)(2)-1. Treatment of amounts deferred under certain nonqualified deferred compensation
I would like to send you a copy of the plan to see if you agree with their assesment of it, but what I really want to know is, do I continue to pay FICA once I am fully retired and collecting Social Security if what they say is true? And...since I elect joint and survivor options and should I die first and my wife continues to receive the benefit
, dies FICA continue to be applied?
Currently, I am collecting my pension
, just started collecting Social Security (I turnedd 66 in January, 2013 and received my first check in February) and still working full time and plan to for at least another year.