Posted by Regarding the relationship between annuities and U.S. retirement pensions,American Life Insurance GuideCommunity members sorted out the 3 most common questions, and made the most concise answers and explanations, hoping to help readers who plan to retire early.
Can I use the money in my IRA retirement account or 401K account to buy an annuity?
-can.You can put the money in your IRA or 401K account into an annuity account.The correct conversion process can be tax-free, not tax-free for expenditure withdrawals.
Will annuity income affect the calculation of the social security pension amount?
-will not.
After retirement, will annuity income affect social security pensions?
-Have.Although the annuity account does not affect the calculation of the pension amount by the Social Security Bureau, it may have an impact on the taxation of the IRS. The details are as follows:
The income source of most of us after retirement is mainly composed of the following 5 parts:
- Social Security Social Security Pension Account
- Pension/SEP/401K/403B/IRA/Annuity accountWait
- Life insurance policy account
- Savings account/investment account
- Real estate sales or rental income or housing reverse loan funds
After retirement, the IRS still has to calculate the AGI based on the annual income of each person and family and collect taxes based on it.
If social security pension is your only income,TurboTaxTell us that you don’t even need to file a tax return.
But in this article, we are concerned about switching from IRA, SEP, 401KAnnuity accountIn the situation, the annual withdrawal from this annuity account is equivalent to a new income, which is to calculate the AGI, and file and pay taxes.At the same time, in this case, the Social Security pension must reconsider the issue of taxation.
The following is provided by AARP "Do social security pensions need to be taxed?"A brief description form. From the table, we can see that if you withdraw money from the annuity account every year, the money will need to be recalculated for AGI. If the retired couple file a joint tax return and the total income exceeds $44,000, the social security pension will be 85 %, to be taxed according to the tax rate of the year.
Q&A Summary
In this article, we have shared 3 common problems with American retirement annuities, especially "The relationship between annuity income and social security pension", a simple explanation. In actual situations, the calculation results of AGI vary with the attributes of annuity accounts and the withdrawal methods. If you have any needs in this regard, please scan our QR code and contactAmerican Life Insurance GuideIn the community, the services of professional retirement financial planners and accountants.
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