Understand the Federal Income taxes you will pay on Railroad Retirement Annuity.
In this video we discuss:
1. Tier 1 calculations
2. Tier 2 taxation
3. strategies to minimize taxes on Annuity.
and more…
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Disclaimer: This video is provided for general information and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. Highball Advisors encourages you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Highball Advisors, and all rights are reserved.
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H ow do I email question
I really need help with a formula for me and my husband.
Most complicated pension, ever. Needs to be revised.
@john mcnamara is there a video that show exactly how to fill in the simplified method worksheet? Question number one says the following: "Enter the total pension or annuity payments received this year. Also, add this amount to the total for Form 1040 or 1040-SR, line 4c; or Form 1040-NR, line 17a. " I don't even see a line 4c or 17a on my 1040. Thanks
This video is incorrect when it claims Tier 1 is taxed using the same methodology as Social Security. Tier 1 will be taxed like Social Security if your Tier 1 benefit is all SSEB (Social Security Equivalent Benefit), but the U.S. Railroad Retirement Board expressly states the following:
The Tier 1 annuity component may be composed of one or two portions depending on the beneficiary's age and type of annuity. The two portions of Tier 1 are:
– SSEB portion of Tier 1, and
– NSSEB portion of Tier 1.
Therefore, a beneficiary may receive a Tier 1 that is all SSEB, all NSSEB, or a combination of both SSEB and NSSEB.
https://www.rrb.gov/node/3250
For example, a "60/30" retiree (age 60 / 30 years of service) will have a Tier 1 benefit that is entirely NSSEB while he is 60 and 61. At 62 (and all later years), his Tier 1 benefit will be a combination of SSEB and NSSEB. Any retiree with 30 years of service will also have Tier 1 benefit that is a combination of SSEB and NSSEB if he retired prior to his "normal retirement age". Many retirees, however, will have a Tier benefit that is entirely SSEB . A Tier 2 benefit is always NSSEB.
SSEB (Social Security Equivalent Benefit) amounts are federal taxed using the same methodology as Social Security (i.e. partially taxed from 0% to a maximum of 85% depending on your income level). NSSEB (Non-Social Security Equivalent Benefit) amounts are treated as if they were received from a private pension plan and are federal taxed @ 100% (unless you elect to roll NSSEB amounts into an IRA).
Can you calculate for a widowed spouse who is making about 20000 working
How is income from Capital Gains, Dividends and/or profits from short term stock investments affect my Railroad Retirement Annuity taxes?