Provisional Income
Is any part of the income in a Roth IRA (equity or interest income) considered as part of the Provisional Income Calculation for Social Security Taxation up to the 85% that is taxable based on 1/2 of Social Security Income and the total of the Provisional Income? Haven’t been able to see this defined clearly in any research.
Permalink Submitted by Alan - IRA critic on Tue, 2018-11-27 16:28
No activity WITHIN an IRA will affect SS taxation. However, if a non qualified Roth IRA distribution is taken that includes a taxable amount, then the taxable amount is included in modified AGI for determining how much SS income is taxable. Of course, after 59.5 and 5 years a Roth IRA becomes qualified and completely tax free so none of these distributions would affect SS taxation. Before the Roth is qualified the taxable amounts come out last, so even then partial distributions would not add to modified AGI.