Withdrawals from a 401k, does it affect the Medicare B and Social Security tax?
You'll need to sign in or create an account to connect with an expert.
Hello @hnl66 , I'm happy to help.
This is a multi-faceted question, I will attempt to answer your question fully.
Withdrawing money from a 401k can affect the premiums paid for Medicare part B.
The following link to the Social Security Administration provides more information on how this is determined:
https://www.ssa.gov/benefits/medicare/medicare-premiums.html
Distributions from retirement plans, such as a 401k are not considered earnings. However, 401k distributions increase the overall income, which can affect the amount of Social Security that is taxable.
When the only income is from Social Security, it is not taxed.
However, depending on the total income, up to 85% of benefits can be taxed.
The following TurboTax article provides information that you may find helpful in determining the taxable amount of your benefits:
I hope that this fully answers your question, please reach out if you need anything more on this topic.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
afromca
Level 3
Michael16
Level 4
IRAQuesiton
Returning Member
E-hanson
New Member
Nancy_73
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.