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How would the distribution of income change if Social Security were privatized?
Privatizing social security would mean that it is no longer a guaranteed system that Americans can depend on. Instead, it would be more like a pension program, and many pension programs have ended because private companies have found them too costly. It is not worth the risk of such an important program ending or being downsized. People are really not going to save for there retirement money..that why we have this program so when we retire we can safely know that we have money.
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Answer No. Social Security income is considered a "protected class" and cannot be garnished. Most garnishments would be a result of a court order and n…ot because of some private company got a wild hair. The IRS is the only exception to effecting a garnishment without benefit of a court order that I know of.
When calculating social security income thresholds are pensions from private companies or the military included?
No, not if this is about the earnings test amount of $14,160 before your SSB are reduced. Pension income is NOT earned income for this purpose. Only the amount of income tha…t you have worked for and earned would be used for the earnings test amount of $14,160.
No reason for the amount of your social security benefits to change. Some of the SSB could become taxable income to you on your income tax return.
YES, the IRS CAN garnish your Social Security Retirement benefit! This is a relatively new program, though it was apparently authorized under legislation from several years ag…o. If your monthly benefit is more than $750, they may garnish 15% of your monthly benefit for taxes that are at least six months in arrears. (This doesn't apply to certain Social Security Disability benefits and perhaps other types of Soc. Sec. benefits, but it does apply to S.S. Retirement. I know, because I just got a letter from the IRS notifying me that they'll be taking $207 from my monthly payment.) The IRS is required to notify you before it begins to garnish your Soc. Sec., but in my case the notice arrived just two days in advance. You can appeal the garnishment for reasons of "hardship," but you should do it immediately upon receiving the notice, or they'll garnish your next payment. Actually, it is the Treasury Dept. that has the authority to withhold any money owed to the federal government out of any U.S. Treasury payments to its citizens or suppliers. Treasury writes ALL checks for the government, so they were given the authority....don't forget the oldest rule: You cannot escape death and taxes, so please pay your taxes, and hope for a long life. While notice of an SS payment holdback needs to be given, (unlike most of the other offsets the government may make on payments it sends), an argument that you weren't given enough time would likely fall on deaf ears...you were more than likely well advised and given protest/dispute opportunities about the DEBT that is being paid - and failed to adequately respond or say why you didn't owe it and the Government was wrong in demanding payment...perhaps thinking there wasn't much they could do? Garnishment of SS is well on in the collection process.
No. The Social Security benefits would be a part of all of your other Unearned Income for the year. You are not working for the benefits that are paid to you during each year.…
Answer No, ordinary creditors can't garnish Social Security benefits. However, the IRS can. This is a relatively recent program. If your Social Security benefi…t is more than $750/month, and you have an IRS obligation that's more than 6 months in arrears, the IRS can garnish 15% of your monthly benefit. As I understand it, this may not apply to Soc. Sec. Disability or perhaps to other types of Soc. sec. benefits, but it definitely applies to S.S. Retirement benefits. (I know, because I was just notifed that they'll be taking $207 from my monthly benefit!) They must notify you in advance, but the notice may arrive just a couple days before they garnish your next payment (mine did). You then have the right to appeal it, based on "hardship," but you should contact the IRS right away or they'll garnish your next payment. Answer NOT SS disability payments. Answer No. All Social Security benefits are totally exempted from creditor action, except by the IRS under the recent program mentioned above.
My CPA, has advised me, that you can take funds out of your 401k/IRA without any penalty or it being counted against your income. Bottom line, it is not counted as earned inco…me.
You will have to use the worksheet to determine the correct amount. If you have other worldwide income, tax exempt interest, tax exempt dividends, etc it is possible that from… 50% to 85% of your social security benefits could become taxable income on your income tax return at your marginal tax rate. Go to the IRS gov website and use the search box for IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits. Publication 915 is available on the IRS Web site. If you received income from other sources, 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. Your taxable benefits and modified adjusted gross income are figured on a worksheet in the Form 1040A or Form 1040 Instruction booklet. 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, then some of your benefits may be taxable. From 50% to 85% of your SSB can become taxable income on your 1040 income tax return and would be added to all of your other gross income and taxed at your marginal tax rate. For additional information on the taxability of Social Security benefits, Go to the IRS gov website and use the search box for IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits
No. Had this project moved forward the money would likely have gone to firms like AIG, Goldman Sachs, and Lehman Brothers. They have, as a an oligopoly, an extraordinary con…flict of interest in that they can create or cause to be created, paper that appears on the face to have value but ultimately does not. They can then cause your retirement assets to be used to purchase this valueless paper at extraordinary personal profit today while future generations learn that it is worthless long after the fact of the swindle. Privatizing Social Security is the most efficient way to secure retirement in the future. Investments would be restricted to insured municipals.Government Bonds and selected high grade corporation dividends. Ex: I calculated my SS contributions and matching contributions by my employers during my working life and estimated that these contributions invested, as suggested above, would have yielded $750,000 at retirement. Given a very low 3% return during retirement would yield $22,500 per year and my heirs would inherit $750,000 at my death. Our government would subsidize the transition for approximately 25years and then be free of the entitlement forever, similar to a mortgage. This would start at age 40 and all those qualified for SS over 40 would continue to participate in the present system.
When you have other types of worldwide gross income and tax exempt interest and tax exempt dividends YES it is very possible that from 50 % to 85 % of your SSB can become taxa…ble income on your 1040 federal income tax return.
Social Security only considers earned income from an employer or self-employment, up to a cap of $106,800.00, to count as income for their purposes. Typical sources of unear…ned income include: inheritancepensions (from other sources)income from investmentsincome from annuitiesIRA distributionsinterest earned401(k) distributionsproceeds from the sale of a home or other property other government paymentsetc. These sources of financial support do not affect the amount of your monthly benefit check, nor are they subject to being taxed under FICA.
Yes and the assisted living facility would get some other funds from other sources that may qualify for.
Are you asking if there is an age when SS will no longer apply FICA to earned income? If so NO!!
Yes social security benefits are considered to be income and when you have other sources of worldwide income it is possible for some your social security benefits to become ta…xable income at your marginal tax rate on your 1040 income tax return as long as you are still living. Yes you do know that SSB are considered to be income and when you have other sources of worldwide income it is possible for some your social security benefits to become taxable income at your marginal tax rate on your 1040 income tax return as long as you are still living.
Dangerous. Privatized Social Security means the contributions would be paid to, and the funds managed by, one or more private investment firms, rather than managed by (and bac…ked by) the federal government. The investment company would be run on a for-profit basis (which the federal government does not do), meaning investors would make money from ordinary workers' contributions, a practice with a built-in conflict of interest detrimental to the worker. If Social Security had been privatized when the stock market crashed in 2008, it would have been disastrous. For more information see Related Questions and Related Links, below.