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Do payments from Individual Retirement Accounts (IRA's) and Keogh plans count as wages?

Excerpted from "Social Security Handbook". See the up-to-date, official Social Security Handbook at ssa.gov.

1338. Do payments from Individual Retirement Accounts (IRA's) and Keogh plans count as wages?

Payments from your Individual Retirement Account (IRA) are not considered "earnings." Likewise, if you are self-employed, payments from your Keogh Plan are not considered earnings. These payments are counted when they are deferred, not when they are distributed.

Last Revised: March, 2001

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I'm planning on taking a $7K distribution from my 457 - does this count as income against my SS benefit?

Assuming you're asking about "normal Social Security retirement benefits" (not SSI), then Social Security counts only the wages you earn from a job or your net profit if you're self-employed. Non-work income such as pensions, annuities, investment income, interest, capital gains and other government benefits are not counted and will not affect your Social Security benefits.

Note taking the 457 distribution may boost your taxable income and subject some or all of your Social Security benefit to income taxes.

http://ssa-custhelp.ssa.gov/app/answers/detail/a_id/440/


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