Advanced Underwriting Consultants

Question of the Day – September 6

Ask the Experts!

Here’s the question of the day.

Question:  My client is collecting pension benefits.  Are Social Security taxes collected from those payments?

Answer:  No.

According the Social Security Administration’s website:

You may have to pay income tax on pensions, annuities, interest or dividends, but you do not pay Social Security taxes. Those types of income are not on your Social Security record.

Social Security taxes do apply to employee contributions to a qualified plan—such as elective deferrals to a 401K plan.  However, they do not apply to employer contributions to most qualified plans.

Have a question for the professionals at AUC?  Feel welcome to submit it by email.  We may post your question and the answer as the question of the day.