|
FICA Taxes (OASDI & Medicare) on Pension Payments?
09-13-2021, 04:40 PM
|
#1
|
Thinks s/he gets paid by the post
Join Date: Nov 2016
Location: Washington State
Posts: 2,340
|
FICA Taxes (OASDI & Medicare) on Pension Payments?
I know income taxes still apply, but are OASDI and Medicare taxes taken out of pension payments? Or do these only apply to earned income from a job?
I saw this mentioned somewhere but now I can't find anything to confirm it.
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
09-13-2021, 04:46 PM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2013
Location: ATL --> Flyover Country
Posts: 6,649
|
Not that I know of. FICA is often referred to as a "payroll" tax since it comes from, well...you know.
Further reading: https://turbotax.intuit.com/tax-tips...-tax/L3dLJUbLN
__________________
FIRE'd in 2014 @ 40 Years Old
Professional Retiree
|
|
|
09-13-2021, 04:47 PM
|
#3
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,204
|
Quote:
Originally Posted by mountainsoft
I know income taxes still apply, but are OASDI and Medicare taxes taken out of pension payments? Or do these only apply to earned income from a job?
I saw this mentioned somewhere but now I can't find anything to confirm it.
|
No... no payroll taxes on pension benefits.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
|
|
|
09-14-2021, 09:40 PM
|
#4
|
Recycles dryer sheets
Join Date: Apr 2021
Location: Sherman Oaks
Posts: 62
|
Nope.
|
|
|
09-15-2021, 12:34 AM
|
#5
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2006
Location: Boise
Posts: 7,862
|
My Dad receives a small state pension and there is no FICA taken out of it. He does have the option to have income tax withholding if he wants.
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
|
|
|
09-16-2021, 10:46 AM
|
#6
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2015
Posts: 5,775
|
We had the choice when we started our pension whether or not to have income taxes taken.
We chose to do that for both state and federal. No other taxes are paid on it.
__________________
Give a Man a fish, he will eat for a day.
Teach a Man to fish, he will eat for a lifetime.
|
|
|
09-16-2021, 12:36 PM
|
#7
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2012
Posts: 6,096
|
^^^ Same here. Other than the federal and state income taxes I choose to have withheld, no other taxes are taken out of my pension.
I also choose to have my Megacorp retiree health insurance premium taken out, but that is it.
__________________
FIREd date: June 26, 2018 - "This Happy Feeling, Going Round and Round!" (GQ)
|
|
|
09-17-2021, 12:02 PM
|
#8
|
Recycles dryer sheets
Join Date: Nov 2011
Posts: 181
|
If you are eligible for a Supplemental Executive Retirement Plan (SERP) -- primarily this is through big corporates -- then this portion of your pension will be subject to OASDI and HI FICA taxes. And they will collect it up front, calculated from a present value of expected future SERP payments. This amount is then repaid from the initial SERP payments. Our experience is it takes about 6 months to pay off this up front FICA tax before SERP payments start showing up in your bank account.
__________________
FIREd 2012 at Age 49
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|