How are Social Security Benefits Taxed in an FRP Model

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JoelAlbert
Posts: 7
Joined: Tue Jan 10, 2017 12:21 pm

How are Social Security Benefits Taxed in an FRP Model

Post by JoelAlbert »

I was wondering how the SS Benefits are taxed in an FRP model?

Does it implement the IRS rules?
https://www.irs.gov/uac/your-social-sec ... be-taxable

or just use the Effective Tax Rate you supply?

Thanks

Joel

jimr
Posts: 596
Joined: Thu Feb 28, 2008 6:48 pm

Re: How are Social Security Benefits Taxed in an FRP Model

Post by jimr »

The simulation logic taxes Social Security income based on the average tax rate that you enter when you create the SS cash flow in additional inputs.

The planner has lots of flexibility, but it doesn't attempt to model your specific tax situation. That means it's up to you to understand roughly how much your SS income will be taxed on average and enter that into the planner.

JoelAlbert
Posts: 7
Joined: Tue Jan 10, 2017 12:21 pm

Re: How are Social Security Benefits Taxed in an FRP Model

Post by JoelAlbert »

Thanks -- I missed this setting in my model.

Joel

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