Quote:
Originally Posted by CamaroFred
You pay taxes on your SSI and your pension and other retirement plans, like a 401K, because you didn't pay taxes when you earned that money.
Theoretically, you will be in a lower tax bracket when you begin to withdraw the funds so the tax won't be as much as when you earned it.
And for SSI, last year I was taxed on ~62% of what I collected. Since I have money withheld every month I received a refund. That may depend on your total income though.
They don't take money for your Medicare, they take money for any supplemental plan. If you join a Medicare Advantage plan they deduct for that. You can refuse the supplemental insurance if you wish, but if you join a plan later in your life the cost will be higher than joining ASAP.
There are a lot of doctors who won't accept Medicare patients but will accept patients with an Advantage plan. And you will probably never pay a deductible.
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Well I'll put it this way. The wife and I worked real hard so we could retire at an early age. I retired at age 59 from driving truck 38 years and 49 states. I retired on the day I turned 59 so I didn't lose and money. got me a good pension of $55,000 after federal & state taxes.
Started drawing my SSI at 62 with a reduction of $725 a month for taking it early. The wife retired at 65. When I retired everything was all payed off.
But here is the kick in the A$$ last October My pension was cut $1,130 a month. Because the pension fund was going broke. But we set are self early in life so were OK.
But I been retired fourteen years now and in good health and enjoying life at 73.
