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Your after-tax contributions allow you to receive funds tax-free in retirement as long as you have owned the account for at least five years. You can expect to pay taxes, though, on any tax ...
The only exceptions are Social Security benefits, federal and railroad pensions and previously taxed retirement income, if you paid the tax in another state. ... After-tax pension contributions ...
The “CSRS Offset” plan, which includes both CSRS and Social Security, but with CSRS contributions and benefits reduced by Social Security contributions and benefits; FERS; or; Social Security alone. [5] Congressional pensions, like those of other federal employees, are financed through a combination of employee and employer contributions.
A mistake can get you in trouble with the IRS. Here's what you need to know.
Median household income and taxes. The Federal Insurance Contributions Act (FICA / ˈ f aɪ k ə /) is a United States federal payroll (or employment) tax payable by both employees and employers to fund Social Security and Medicare [1] —federal programs that provide benefits for retirees, people with disabilities, and children of deceased workers.
The Social Security tax is one component of the Federal Insurance Contributions Act tax (FICA) and Self-employment tax, the other component being the Medicare tax. It is also the maximum amount of covered wages that are taken into account when average earnings are calculated in order to determine a worker's Social Security benefit.
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