Do I Pay Medicare Tax On Retirement Income?

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Do I pay or do you pay Medicare taxes on retirement income? Hmm... That’s a chewy subject.

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I am Stan the Annuity Man, America’s annuity agent, licensed in all 50 states. Know a lot

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of you out there are inching toward that decision and what happens to Medicare, how

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is that taxed. Bottom line, I am going to tell you my opinion on everything,

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but you got to, you know, at the end of the day talk to your CPA and tax lawyer for them to

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bless it. That’s my blessing. But let’s get into the details after this.

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Alright, so, typically Medicare taxes only apply to earned income, like you have a job.

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Annuity type income know, but I’m going to have to throw in that little asterisk on that. You high

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earners out there, there are some hurdles for you that you have to talk with your CPA and

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tax lawyer about. But for the vast majority, the answer is no. Look at the date of this taping,

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okay? And it’s very important because even though this is evergreen content and lives on

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forever, the nuclear bomb hits and people still watching Stan the Annuity Man

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YouTube videos. You know, our country, as you know, has a little bit of a debt issue. At the

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time of this taping, it’s 37 to 39 trillion. I think it’s a trillion of interest we

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pay per year. Check the date. You five years from like trillion, that’s nothing.

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My point is that I think a lot of this could and might change because they our politicians have

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a spending problem. Okay? And they somehow can’t cut spending. A cut to them is a lower increase.

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That’s a cut somehow. I don’t understand that. But what I don’t want you to do is think that,

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okay, we’ve locked this in. We’re going to be grandfathered in and we might not ever be taxed on

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this ever again. I hope that’s true. I tell people that own Roth IRAs, no offense to Roth IRAs,

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I hope that they don’t change those rules because I remember a long long time ago when they used to

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say they the politicians, we’re never going to tax Social Security. We’re never ever going to

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tax Social Security. Guess what? It’s tax now. Same thing with like currently, you know,

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it’s earned income that is taxed with Medicare, etc. And annuities and 401(k)s,

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all that stuff. It’s not. That’s probably going to change because the stats are ugly. 60

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plus percent of people that are 65 years or older, I believe, have less than $10,000 to their name.

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Over 55% of the country has their net worth in their front pocket. So, be careful who you

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flip off on the road because they have nothing to lose. Now, those people are also called voters.

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They’re working hard. Something that just hadn’t worked out. They’re voters. So,

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they’re going to vote for their livelihood. And their livelihood is going to involve people that

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have money and what I call the evil rich. I was talking to a guy the other day and I said,

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“You do understand that you and Martha are considered the evil rich?” And he goes, “Ain’t

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no way. We hadn’t made that much money. We just put it away and scrimped and saved.” And of course,

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you did, and that’s good. But for politicians, they’re going to go after taxable things. So,

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I’m answering the question today that it doesn’t apply to annuities, but in the future it might.

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And for rich people right now, it does. So, they’re already doing that what they call in

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South Philly, East Jersey, the salami game. They just keep slicing away and they keep putting

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their foot inside the door and they’re saying, “Yeah, for everybody, you know, you don’t have

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to pay tax on it.” But if you’re a high income earner of which they define, then you know,

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there’s a taxation on it. There’s some acronym, I forgot what it’s RIT or whatever it is.

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I forgot what it was. But we have to deal with that when working with our clients CPAs and tax

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lawyers. Bottom line, when you’re building your income floor, build it with some extra fluff. So,

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you’re looking at Social Security. You’re looking at your RMDs on your IRA. You’re looking at

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the pension income if you’re getting that, if you’re so fortunate. Only 9% of the people get

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pensions. Dividend income, all the income that’s coming in. Okay? If that’s sufficient, great.

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But there needs to be a little bit of padding in there in case these tax laws do change, in case

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they do start raising taxes or taxing things that currently aren’t taxed. And yes, hopefully they

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grandfather you into whatever rule was intact when you made the decision and then they change it.

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But there’s no guarantee with that. Especially at the debt levels that were running. And this

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isn’t political. I could care less. I don’t like both parties. I don’t even like the third party,

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whatever that is. I don’t like any of it, okay? because it’s all about power. It shouldn’t be

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about power. It should be about us, the country. Yes, I should run. I know. I know what you’re

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saying. But what I want you to come away from this video is yes, the tax laws in place. Yes,

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we can make decisions on the tax laws in place. But we also need to prepare when they eventually

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and potentially will change those tax laws. So, I was like mid-stroke with that video.

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I’m like, I’m going to go over to my computer and look up the percentage for high-income earners,

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what they have to pay. It’s 3.8% at the time of this taping. Now, Medicare, as you know, is part

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of the whole FICA thing, and part of earned income. But somehow 3.8% for high earners. And

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I didn’t dig deep into what that is because I’m afraid to might include me. Bottom line is, right

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now, at the time of this taping, annuities don’t apply because, you know, Medicare payments part of

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FICA and it’s part of earned income. But will that change in the future? Maybe. Now, there’s a lot of

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smart people out there saying, it’ll never change Stan, you know the politics. You cannot say that.

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You cannot say that with the current situation in this country at the time of this taping with debt,

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with fraud, with all the things that are happening that you either, you know, some of you agree with it,

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some of you don’t agree with it. Not sure what’s true on the news. But use annuities for lifetime

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income. Use annuities as the pensions you don’t have. Use annuities to solve for longevity risk.

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Go to my site at the annuity man and shop all carriers for the highest contractual guarantee

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for your specific situation. Schedule a call with my team so they can talk with you. Not sell you,

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talk with you. Can you purchase through us? Yes, we’re the number one sellers of fixed annuities on

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the planet. I’m the top agent in the world. But that’s not the point. The point is we’re going

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to listen to you. And if an annuity doesn’t fit, we’re going to tell you. If you’re being pitched

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something, we’re going to tell you the truth about it. Annuities do not solve for inflation.

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You already have the best inflation annuity on the planet, which is Social Security. We can

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solve for inflation at the time you need that gap filled by reverse engineering an immediate

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annuity quote. Bottom line with annuities, they’re contracts. They’re a contract between you and the

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issuing life insurance company. Life insurance companies issue annuities. It’s a contract.

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So only consider the contractual guarantees of the policy. I’m the pioneer of that. I started

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the whole CGO, Contractual Guarantees Only. I started that. Hopefully people will continue

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to follow me. Because when you do that, when you buy annuities like that, you’re happy. Okay?

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Do me a favor. One last thing. Because I know that this was, I don’t know. It’s kind of a stump speech

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without me running. But that’s okay. You know, as my grandfather told me, if you tell the truth,

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you don’t have to remember anything. That’s the truth. That’s the way I see it with my 30 plus

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years of experience. Do me a favor. Above my head is a box. You’re going to see kind of a countdown

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clock. And that box, that link will take you to another video that explains the process of if

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you did decide to use us and become a client. It’s very informative. I go through everything

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how it works, soup to nuts, front to back, the whole thing. Bottom line is we take care of it,

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but you need to know how that works. My name is Stan the Annuity Man. See you next time.