[net.misc] withdrawing from Social Security

tombl (01/26/83)

Sure hit a hot one that time. I sort of thought everyone knew about it.
For a small fee, if there is sufficient volume, I will reveal how YOU
TOO can save millions by avoiding Social Security TAXES (it really is a
tax, I don't care what they say).

Seriously though, I checked this out with the local SS office. If you
are an employee of a federal organization which chooses to withdraw,
then you no longer have the priviledge of supporting SS. If you are an
employee of a non-profit organization, you may also be exempt from
paying SS. It depends on a couple of factors, but once the organization
has joined up, it cannot withdraw without an eight year waiting period,
or something of that sort, and all new employees must enter the system.
Also, ministers who have taken a vow of poverty are exempt, or
something like that. For the details, call the SSA or the IRS.

There is a bill in congress which would make it mandatory to join up.

There is a program which more or less parallels SS for employees of
these organizations (I know because I took advantage of it at my last
job) which is MUCH better for most of us. You can defer up to 20% of
your annual income into a separate fund; the fund can be invested in
virtually any way you choose.  All or part of the balance can be
withdrawn at any time. Taxes and tax-rate are reduced in years when net
contributions are made. You pay taxes on the dollar value of funds
removed (including return on investment) in the year you remove it.
If, for example, you are planning to go back to school after working
for a couple of years, you can defer the income until you return to
school, presumably a lower-income year. You can also defer it until
after retirement.

	Tom Blenko
	decvax!teklabs!tekmdp!tombl
	ucbvax!teklabs!tekmdp!tombl

wakeup (02/04/83)

Everyone is forgetting the only real way to withdraw from SS and possibly
a lot of other taxes too. Don't have earned income. Have all income from
investments, royalties, annuities(sp), etc. I will agree this may not be
a viable solution for everyone though.