Are Internal RevenueCode section 403(b) plan distributions taken in retirement after age 55 subjectto Federal Income, State Income, Social Security, or Medicare taxation?
Distributions from a403(b) account are taxable as ordinary income to the employee; however, if thedistribution occurs when the employee is under age 59½ , the amount may be subjectto an additional 10% early-distribution penalty, unless the employee qualifiesfor an exception.
The distributions arenot subject to social security or Medicare tax. Readers of this blog will wantto read other postings regarding potential housing allowance benefits toministers who receive retirement distributions from church plans.
The members of my FederalTaxation I class at Maranatha Baptist Bible College in Watertown, Wisconsinhave taken on the challenge of study and research to answer posted questions. JamesJorgensen of Owatonna, Minnesota gets credit for this one.
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