Pennsylvania Ira Distribution Rules
September 29th, 2009
Retirement Planning Consultant in Pennsylvania (PA)
Ira Income Rules
September 26th, 2009
Question: Retirement: Social Security and IRAs?
1. PRESUMPTION: My Social Security. Once I start receiving SS, what taxes will I owe out of each month’s check?
2. CURIOSITY: Using today’s US tax rules/laws. When I truly retire at 63, may I continue to contribute to my Traditional IRA using my military retirement pay as my source of income? The US Government classifies military retirement pay as “reduced compensation for reduced services”; it is not a pension”.
Thanks.
Thanks NewJersey! That helps me plan my IRA.
Thanks Custiz20 for the useful info!
Answer: There is a “Social Security Benefits Worksheet” to calculate your taxes from SS. You can find it on page 25 of the 1040 instructions:
http://www.irs.gov/pub/irs-pdf/i1040.pdf
If SS is the bulk of your income you will probably not owe taxes on it, but use the worksheet to be sure.
As for the IRA, some people get very part time jobs simply to have earned income so they qualify to put money into an IRA or ROTH IRA. It might be worth your while to make $5,000 just to qualify to contribute $5,000.
Best of luck in your retirement ventures!!
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