Quote:
Originally Posted by rustyp
Try this on - you get to collect tax free up to the amount you contributed into the system. Once you hit that point you owe regular income tax on any further distributions.
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Your plan would only benefit higher income people. The Government doesn't start taxing SS income until your total income exceeds $25K. Most low income retirees pay no tax on their SS income, and many don't pay any income tax at all. The SS system is designed to transfer wealth from high income earners to low income earners. Not the other way around.