is fica withheld from pension checks?

Answer 1

I get a pension check and FICA is nt withheld from it, so my guess is NO. And, I believe this is generally true. FICA is a tax on employers and employees, and by definition, those receiving pensions are not employees.

Of course, if I get a job and work in retirement, my employer would have to withhold my FICA, and pay the employer's share.

When I fill out my income tax, there is a complicated form I must fill out. My Social Security check is not included as taxable income as such, but there is a place where I must report all my income, and if it is over a certain amount, then some portion of my Social Security check is taxed, but at my income level, it is not much.

Let me point out something almost no one ever tells those who are thinking of retiring. To estimate how much less money you can earn after retiring, you can take your current income level, subtract the 7 or so percent FICA that comes out, THEN SUBTRACT THE TAX YOU HAVE BEEN PAYING ON THAT 7 OR SO %, and you haven't lost a cent of spendable income until your actual check drops below that level.

Then, you can also subtract things you don't spend when you aren't working. For example, vacations when you work cost a lot because they have to be fast. when you retire, you can take three months to drive to Yellowstone, if you wish. And, you don't need a new car all the time because it doesn't have to start at twenty below zero.

Um, if you have spent a lot of money on clothes for work, when you retire a lot of retirees, male and female, tend to wear jeans to knock around. I realize this goes beyond the question about 4 miles, but for those who are actually considering retirement, you need to know those figures about needing millions of dollars before you retire are nothing but investment counselor's lies.

Answer 2

FICA taxes (Social Security and Medicare taxes) are not withheld from pension payments, but...

...payments from pensions, profit sharing, stock options and annuities are treated as wages and Federal income taxes are withheld, unless you elect to have them not withheld by filling out W-4P. That form remains in effect unless/until you decide to change it. Whoever pays your pension must inform you every year that you have the right to change it.

Answer 3

Depends on plan.