The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: Will Your SS be taxed? Date:  11/4/2013  10:36 AM
Author:  TMFPMarti Number:  119452 of 127637

"The only form of income I can think of that is not included would be qualifying Roth IRA withdrawals" - And I was wondering if that is correct? When I was researching this earlier this year I did not find anything that indicated Roth IRA distributions were not included in the determination of taxable SSA benefits.

The key word is "qualifying" (which actually should be "qualified"). Qualified Roth distributions never make it into AGI, thus they're not included in the income used to determine the taxable portion of SS benefits.

People often fret that the Roth rules are going to change as Congress gets more and more creative in looking for money. I'm surprised they haven't already changed this calculation to treat qualified Roth distributions the same as they treat tax-exempt interest income and add it in even though it's not part of AGI.

Rule Your Retirement Home Fool
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us