Do I Have to Pay Taxes on Survivors Benefts?
Full Question:
I retired 5/1/10, started to receive Widows B. , Is this taxable? I made less than 25,000 when working. Pulled money out of IRA the past year, do this matter?
02/20/2011 |
Category: Social Security |
State: Florida |
#24258
Answer:
According to the Social Security Administration, taxes may have to be paid on social security benefits, depending on your benefits, income level and tax filing status. As of May 2010, the SSA noted that less than 1/3 of social security recipients pay taxes on their benefits.
Whether your IRA withdrawal is taxable depends on whether it is a traditional or Roth IRA. Withdrawals from a traditional IRA are taxable, unlike a Roth IRA. However, withdrawals before age 59 ½ are subject to a penalty.
Please see also:
http://www.ssa.gov/pubs/10084.html
http://www.irs.gov/faqs/faq/0,,id=199773,00.html
http://beginnersinvest.about.com/cs/iras/a/aairafees.htm
