Does An Annuity Count As Income For Social Security?

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Hi there, Stan the Annuity Man,

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America's annuity agent, licensed in all

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50 states of Puerto Rico. Founder of CGO

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contractual guarantees only. We are

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located in Las Vegas, Nevada. Everybody

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under one roof. Everybody licensed, not

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anyone on commission. Even our even our

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receptionist is licensed on all 50

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states because you have to be licensed

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to talk to you. It's it's one of those

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little legalities that only we seem to

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follow, but uh put that in the back of

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your head. Uh today's topic is a is a

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tax question. I typically don't go there

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and I'm not going to dig in because it's

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um not my lane, but does annuity does

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annuity income count towards social

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social security when you're doing those

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calculations? I'll give you that answer

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after this.

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So, does annuity income count? No, it

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does not count as earned income. it does

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not count as earned income. Just to give

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you a heads up. Now, with that being

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said, you need to get up, get in your

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car, and go see your CPA and or tax

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advisor for any further tax questions

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because unless that person is a CPA,

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a CFP with a certain designation, or a

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tax lawyer, they should not be giving

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tax advice. And that's including me,

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even though I know tax law pretty well,

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having done this for three decades.

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Okay,

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I think the bigger question, so I

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answered the question. It's not looked

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on looked at as earned income. Annuity

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income is not looked at as earned

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income. It's looked at as investment

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income. But with that that being said,

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let's talk about income

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because that's that's really the game.

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It's not that you're trying to thread

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the needle just with this question. It's

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you're trying to stack up income. What

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is your income floor? So, Social

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Security,

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if you haven't figured it out now, it's

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the best annuity on the planet. It's the

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best inflation annuity on the planet

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because the increases are political, not

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actuarial. And by the way, for the

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record, I'm contractual. I'm neither

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part. I'm I'm the head of the

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contractual guarantees only party. Now,

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you already have that annuity social

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security. So, if you want to add to that

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um you know, income floor, you can with

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annuity type income. There's four types

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of annuities uh strategies that provide

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lifetime income. Single premium

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immediate annuities, deferred income

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annuities, qualified longevity annuity

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contracts, and income writers all

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provide income for as long as you're

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breathing. You can set up joints. So, if

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one of you passes, it continues un

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uninterrupted and unchanged for the

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second person until they stop breathing.

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And we'll set it up to where if that

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second person stops breathing, there's

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money in the account. That money goes to

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the family, not the annuity company.

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So, you need to be thinking more about

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instead of trying to thread the needle

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on taxation and beat the IRS and having

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the IRS live in your head for free. I

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would rather you build up that income

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floor and go live your life because you

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and I both know with 40 trillion in debt

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at the time of this tape and it's

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probably even more. If you've never been

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to New York and walk past that building

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where it has the debt clock,

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I just advise you not to have coffee in

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your hand because you'd be like, whoa.

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you know, it's like, holy crap.

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Um, they're going to end up, they

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meaning the politicians, will end up

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means testing all of this. So, all of

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you that don't consider yourself the

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evil rich, all of you out there that's

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done it the right way, scrimped and

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saved and done without and planned,

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threaded the needle,

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they're coming for us. I'm telling you,

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they're coming for us. And I'm just

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saying, if you have a spending problem,

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you need to solve it. you need to learn

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how to spend and enjoy yourself because

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with um current trends politically, you

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know, and you have 60% of the of adults

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out there with less than $10,000 to

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their name, most people have just their

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net worth in their front pocket. Um the

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voting's going to be where you think

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it's going to be. It's going to go where

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you think it's going to go. They're

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going to vote for our money and they're

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going to outvote us.

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And when I say us, I'm throwing myself

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in there as someone who scrimped and

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saved and grinded. I'm a 25 year out 25

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year overnight sensation.

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Okay? Anybody that's started a business,

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you know, most people businesses 80% of

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of all businesses don't last five years.

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And people that's owned one, they get it

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because not only is it hard, sometimes

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you just want to go, screw it, man. It

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ain't worth it. This is crap. because

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they're coming for you. But getting back

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to the the original thought, I think the

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question was, hey, if I add this

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annuity, is it going to is it going to

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do something to my social security? The

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answer is no for now. It's kind of like

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what I tell people about Roth IAS. I'm

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not a huge proponent of Roth IAS because

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I don't trust the government to not

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change the rules or not means test it. I

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hope that doesn't happen because 20% of

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the public have Roth IAS, but that means

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80% of the public don't. and 80% of the

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public think you're the evil rich for

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having one and will outvote you.

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I'm not scaring you. I'm just saying,

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hey, let's be realistic here. You know,

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currently, no. An annuity is not looked

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upon as earned income. It's looked upon

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as investment income. Okay, great. For

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now, that's great. Let's take advantage

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of it. Let's let's build up that income

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floor. Let's go live life. Let's fly

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first class because our kids will. Let's

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take that trip. Let's go eat the

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steakhouse that we never eat before.

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Let's buy that car. I don't know if I

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want you to be as extreme as the guy

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that called the other day and he goes,

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"I'm gonna tell you right now, son. I

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want my last check to bounce." I'm okay

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with that. Okay, I'm okay with that.

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And I get the sentiment. I get it. I get

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it.

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But what I I really hope this topic gave

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me opportunity to say, don't let the IRS

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live in your head for free. I know that

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I've done some videos on Irma, you know,

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Irma taxes and things like that. Um, I

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call her Aunt Irma, you know, aunt Irma

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that never leaves your house. Um, and

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people are jumping through hoops and

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doing without and scrimping and saving

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to try to avoid the Irma tax. Okay?

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They're going to figure out another one.

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They'll have a they'll have an Uncle

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Ernie tax next year. They're going to

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figure it out on how to get the money or

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how to tax you more. Just do what I tell

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you. Go to your income that's currently

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in place. Add it all up. That's your

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income floor. And then see if you need

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to fill a gap. If you need to fill a

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gap, go to my site at theanuityman.com.

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Run quotes. Schedule a call with me.

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Download the books. Get educated. Watch

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the videos. Let's talk. Let's get that

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income floor in place for both you and

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your spouse. if your spouse is, you

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know, if you're still whether you're

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still alive. Um, or if you want to set

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something up with your family.

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I mean, be proactive.

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Be proactive with your lifestyle and

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don't let don't let the IRS live in your

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head for free because a lot of you they

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do and it breaks my heart. You know, I

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got a call the other day and I get calls

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like this a lot. And the guy said, "Stan

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and he he's he's getting ready to pass.

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He he was just diagnosed with something

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really bad." He said, "I should have

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listened to you. I didn't spend any of

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the money." He said, "I'd give $5

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million to feel good right now." And

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he's got five million. He's got way more

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than that. He said, "I give five million

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to feel good for a week." That's what he

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told me. I said, "I hear you, man. I

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hear you." I said, "I'm gonna pass that

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on to people, and I hope people hear me.

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You can't take it with you. There's no

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U-Hauls behind horses. And if you see

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that, take a picture. Okay. In fact,

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that's a good idea. When I pass, I'm

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gonna have a U-Haul pulled behind my

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hearse, and I'm going to I think I

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should put a sign on it said empty.

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I did a video called How annuities can

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take care of your family. It's a big

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one. It It means I like doing that video

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because I've done this for my family. I

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think you need to consider it for your

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family and loved ones or charity because

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annuities can provide that safety,

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stability, peace of mind even when

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you're not here. How about that? So,

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food for thought. Thanks for joining me.

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Hope we talk soon. See you next time.