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Stop, Look & Listen: Railroad Retirement Benefits Q&A

Answers are provided by Robert S. Kaufman

Changing Withholding of Federal Income Tax

(Posted April 26, 2004)

Question 438: I took the 60/30 retirement in 2002; my entire Railroad Retirement benefit was taxed as a pension. Now that I am 62, will the Railroad Retirement Board automatically adjust the withholding of federal income tax to reflect that my Tier 1 benefit now is taxable as a Social Security benefit?

Answer: You need to contact the RRB in order to revise the amount being withheld from your Railroad Retirement payments for federal income tax.

You are correct that at age 62 a portion of your benefit will be taxed under the same rules that apply to Social Security benefits. It will not be your entire Tier 1 benefit-- just the portion that corresponds to the amount you would receive as a reduced Social Security payment at 62. The remainer will continue to be taxed as a private pension.

Important notice:

Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner or to readers. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of this and similar situations.

The law in this area changes frequently. Answers are believed to be correct as of the posting dates shown. The completeness or accuracy of a particular answer may be affected by changes in the law (statutes, regulations, rulings, court decisions, etc.) that occur after the date on which a particular Q&A is posted.

Copyright 1997-2017 Robert S. Kaufman
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