Originally Posted by sirto11
I've been talking to an investment advisor and he made a statement that I'd like to verify because I think he's incorrect.
He says that if you have an annuity in an ira and start taking annuity payments, those amounts, while taxable as ordinary income (assuming all the ira funds were originally tax deferred), do not count in the calculation for whether your social security income is taxable. As far as I can find online it appears that it would count.
Do you have any tax experts that can verify who is correct.
he is correct.In general, Social Security benefits are not taxable to the recipient; however, depending on your marital status and the amount of money you make in a particular year, MAGI I mean, your benefits may become taxable. You can do the following quick computation to determine whether some of your benefits may be taxable: First, add one-half of the total Social Security benefits you received to all your other income, including any tax exempt interest and other exclusions from income.Then, compare this total to the base amount for your filing status. If the total is more than your base amount, some of your benefits may be taxable.