Q & A
How do IRA distributions affect Social Security?
Full Question: Hi, I am 63 drawing my Social Security and have been working part time as well. I have a retirement IRA that I would like to start withdrawing from in 2014. I am no longer working part time, so I will only have my Social Security as income in 2014.($975 monthly for 2014.) Can I withdraw $7,000-$10,000 from my IRA in 2014 without having to pay a lot of taxes? Or does the taxes apply regardless of the dollar amount I withdraw yearly?
Answer: Withdrawals from IRAs are taxable income and Social Security benefits can be taxable. Whether you actually owe taxes and how much depends on a number of things. If Social Security is truly your only income in 2014, your Social Security payments should be tax free and you may not owe any taxes on the IRA either. I’ll start with the IRA. Read more…
Source: Dan Moisand, MarketWatch.com - January 17, 2014
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