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I have IRS question, and a annuity cash out?

Asked by: vpalmer 246 views YA Discussion

My only income for 2012 was an annuity that i cashed out. I might add, i cashed out early.
My question is, can i pay Social Security insurance on that annuity that i cashed out, so i get my credits needed for retirement. I understand you can earn 4 points a year, and you will need X-amount of points in the last ten years to qualify for SSI.
There was income tax withheld, and it was more then 20,000


2 Answers



  1. Go with the flow on Feb 24, 2013 Reply

    ss is based on earned income.
    Not passive income from any investment.

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  2. tro on Feb 24, 2013 Reply

    no you don’t pay SS on the annuity withdrawal
    and cashing out as you call ‘early’ does not apply as and IRA or 401(K) prior to age 59 1/2
    the company has its own withdrawal schedule, generally each year has a specific % that will be penalized, getting less the longer you leave it in
    and your qualification for Social Security is 40 quarters of ‘work’ like self employment or wages, not the income from annuities

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