Which railroad retirement benefits are treated like private and public service pensions for Federal income tax purposes?
Railroad retirement annuity payments exceeding social security equivalent payments, plus any vested dual benefits and supplemental annuities, are all treated like private and public service pensions for Federal income tax purposes. In some cases, primarily those in which early retirement benefits are payable to retired employees and spouses between ages 60 and 62, and some occupational disability benefits, the entire annuity may be treated like a private or public pension. This is because social security benefits based on age and service are not payable before age 62 and social security disability benefit entitlement requires total disability. For annuities beginning after July 1, 1986, railroad retirement payments exceeding social security equivalent levels are generally taxable under the Internal Revenue Code General Rule or Simplified General Rule. For income tax purposes under these rules, contributory payments are subject to income tax immediately upon retirement, but are prorated
Related Questions
- Which railroad retirement benefits are treated like private and public service pensions for Federal income tax purposes?
- Which railroad retirement benefits are treated as social security benefits for Federal income tax purposes?
- Which railroad retirement benefits are treated like private pensions for Federal income tax purposes?
