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How are supplemental executive retirement plans SERP taxed once the benefit is received?
There are many different ways they can be set up, and many different vehicles for the funds...but generally: On set up the money put in them is NOT taxed to the employee, although the payroll handling, from the companies side, may be different. (Also certain parts of things like FICA may need to be paid up front). The executive is defferring the income...not getting it now, not getting taxed on it now. When it is withdrawn/paid out, the original salary is taxable as is the investment growth. It is normally all taxed as ordinary income, even though the investment portion may have received a capital gain treatment...however, depending on the exact set up, sometimes the gain and salary can be differentiated and is taxable as each type. The SERP administrator should explain how and why the specific plan your in works.
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This response is for tax year ending 2009 only: Yes there is. It usually is placed in on the standard 1040 in line #32. "IRA deduction" be sure to read page 31 of the instruct…ions if you are taking this deduction because not everything is always deductible. If you have exceeded the maximum contribution, that amount would not be deductible. In addition, ROTH IRA contributions are not tax deductible either. There is also a credit if your income falls below a certain threshold and you have contributed to an IRA account. It is found on the standard 1040 line 50 and requires that form 8880 be filed along with the line on 1040 to receive the credit. The income limits for the credit are $27,750 - Single, 41,625 - Head of Household and 55,500 - Married filing jointly.
Yes: If the ex-husband is currently collecting and they have been married for at least 10 years prior to the divorce. Also, if the husband has not yet filed a claim, the ex-wi…fe may collect if they were married for at least 10 years prior to the divorce and has been finally divorced for 2 years.
Can you receive Social Security benefits when you retire if you already receive veteran disability benefits?
Yes, if you have the right number of quarters in and are at least 65 or blind or disables.
If you are retired and Social Security benefits are your only source of income, you will need to file, but generally will not be taxed. If you received income from sources oth…er than Social Security, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status. For a single taxpayer the base amount (cap) is $25,000.If your total AGI is $25-34,000, you will pay tax on 50% of your Social Security benefitsIf your total AGI is above $34,000, you will pay tax on 85% of your benefits For married couples filing jointly, the base amount is $32,000If your total AGI is $32-$44,000, you will pay tax on 50% of your Social Security benefitsIf your total AGI is above $44,000, you will pay tax on 85% of your benefits
An otherwise eligible convicted felon may receive Social Security disability or retirement benefits when he or she is not incarcerated for more than 30 days and has no outstan…ding warrants. Social Security will not pay cash benefits to anyone living in a prison, jail, nursing home or other tax-supported facility; however, if the person is eligible for retirement benefits under SSA guidelines, he or she may receive them after release. Payees are not entitled to back benefits for the time spent incarcerated. Yes, yes they can.
Yes you can choose to receive your monthly social security check in the mail if that is really what you want to do.
It depends on the state where you married and the state where you resided. In a community property state, all property that is acquired during marriage - including retir…ement benefits - is community property and therefore upon legal separation, it is split 50/50.. In a common law state however, each spouse own his/her own income and property, so upon separation - what you earned is still yours.
The disability has to be 'approved' by a panel of people, one or several of which could be medical doctors. Just because you or your employer have a 'plan' that includes disab…ility payments doesn't mean that payments are automatically given for an injury. There is most likely a time limit imposed for such payments.
You can receive social security benfits at the age of 65 or if you were born after 1959, 67. This is said to possibly increase with the increasing number of older individuals …in our country and the dwindling number of younger individuals putting money into social security.
You may have read that Members of Congress do not pay into Social Security. Well, that's a myth. Prior to 1984, neither Members of Congress nor any other federal civil se…rvice employee paid Social Security taxes. Of course, the were also not eligible to receive Social Security benefits. Members of Congress and other federal employees were instead covered by a separate pension plan called the Civil Service Retirement System (CSRS). The 1983 amendments to the Social Security Act required federal employees first hired after 1983 to participate in Social Security. These amendments also required all Members of Congress to participate in Social Security as of January 1, 1984, regardless of when they first entered Congress. Because the CSRS was not designed to coordinate with Social Security, Congress directed the development of a new retirement plan for federal workers. The result was the Federal Employees' Retirement System Act of 1986. Members of Congress receive retirement and health benefits under the same plans available to other federal employees. They become vested after five years of full participation. Members elected since 1984 are covered by the Federal Employees' Retirement System (FERS). Those elected prior to 1984 were covered by the Civil Service Retirement System (CSRS). In 1984 all members were given the option of remaining with CSRS or switching to FERS. As it is for all other federal employees, congressional retirement is funded through taxes and the participants' contributions. Members of Congress under FERS contribute 1.3 percent of their salary into the FERS retirement plan and pay 6.2 percent of their salary in Social Security taxes. Members of Congress are not eligible for a pension until they reach the age of 50, but only if they've completed 20 years of service. Members are eligible at any age after completing 25 years of service or after they reach the age of 62. Please also note that Member's of Congress have to serve at least 5 years to even receive a pension. The amount of a Congressperson's pension depends on the years of service and the average of the highest 3 years of his or her salary. By law, the starting amount of a Member's retirement annuity may not exceed 80% of his or her final salary. According to the Congressional Research Service, 413 retired Members of Congress were receiving federal pensions based fully or in part on their congressional service as of Oct. 1, 2006. Of this number, 290 had retired under CSRS and were receiving an average annual pension of $60,972. A total of 123 Members had retired with service under both CSRS and FERS or with service under FERS only. Their average annual pension was $35,952 in 2006.
I do. I have received disability since 2005 and just started 2010 drawing my portion of my x's retirement. I didn't receive enough in disability to file a return but now with …the other it put me over, so I will have to.
Answer First off, there are very few, if any, disadvantages. Advantages include the basic concept that paying taxes later, in this case frequently much late…r, is much bettr than paying them now. Add to it, the taxes you don't pay you get to invest and earn a return on. Those earnings are generally tax deferred too. Special status of most qualified deferred plans means they are exempt from attachment or seizure, even during a bankruptcy. (Security of savings). There are generally methods to obtain hardship or special purpose early withdrawals. If the funds pass to your heirs, upon death, before or after you start withdrawing them, they generally pass without being taxed too.
Can vary from plan to plan...qualified or non-qualified is important. This can be a very complex field, some basics: All amounts deferred under a nonqualified deferr…ed compensation (NQDC) plan for all tax years are currently includible in gross income to the extent not subject to a substantial risk of forfeiture and not previously included in gross income, unless the plan: : ... meets specified distribution, acceleration of benefit, and election requirements; and : ... is operated in accordance with these requirements. ( Code Sec. 409A(a)(1)(A)(i) ) : : If a NQDC plan doesn't comply with the Code Sec. 409A rules, all amounts deferred under the plan for the tax year and all prior tax years, by any participant to whom the failure relates, are included in income for that year to the extent not subject to a substantial risk of forfeiture and not previously included in income. This amount is also subject to: (1) interest (at the underpayment rate plus one percentage point) on the tax underpayments that would have occurred had the amount been included in income for the tax year when first deferred, or if later, when not subject to a substantial risk of forfeiture; and (2) a penalty of 20% of the compensation required to be included in income. ( Code Sec. 409A(a)(1)(B)
Tax Planning is all about putting your hard earned money to YOUR good use instead of all going to the government. It doesn't mean not paying your taxes, it just means being sm…art about where your placing your money to acquire maximum benefits to you and your future livelihood. If you're a business owner, even more attention needs to be paid to tax planning with the below points being included in your planning. • Entity Structure Planning - Create the optimal entity structure for your business and you personally to maximize your tax benefits and legal asset protection benefits. • Compensation and Benefit Planning - Develop strategies that meet your personal and business short and long goals and objectives. Its really about minimizing taxes and out of pocket expenses paid with after tax dollars. The goal is maximize your income and the amount available to the business by minimizing your taxes across the board. • Maximize Advanced Retirement Planning and Income Deferral Opportunities - Business owners must annually capitalize on techniques to maximize monies and continued income streams available for life after the business. • Utilize Succession, Exit Strategy, and Estate Planning Opportunities - Remember, when you exit your business, it will be a taxable event. Develop a plan to minimize taxes on the transfer to ensure you walk away with as much money as possible. • Avoid or Eliminate Questionable or "Grey Area" Tax Planning Strategies to reduce Audit Risk - All your tax planning strategies should be supported by the black and white language of the IRS Tax Code and Regulations. For the informed business owner many opportunities exist.
What is the retirement plan of lpns?