Regional Vice President of Sales The Retirement Plan Company
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Bates & Company, Inc.
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AimPoint Pension
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Loan & Distribution Specialist AimPoint Pension
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Defined Benefit Combo Cash Balance Compliance Consultant Loren D. Stark Company (LDSCO)
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Compass
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The Taxation of Social Security Benefits
Congressional Budget Office [CBO] Feb. 12, 2015
"CBO estimates that income taxes on Social Security benefits totaled $51 billion in 2014 ... About half of all Social Security beneficiaries owed some income tax on their benefits in 2014 ... Less than 30 percent of all Social Security benefits paid out in 2014 were subject to income tax. By contrast, distributions from defined benefit pension plans were entirely taxable, except for the part of each distribution that represented the recovery of an employee's 'basis'... If benefits paid by the Social Security program were treated the same way -- by taxing all benefits that exceeded the basis -- federal revenues would be more than $400 billion higher over the next 10 years." [Additional detail about the estimates is online.]
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