What impact will a withdrawal on my 401(k) have on my Social Security?

I start collecting Social Security in August. I was wondering if I decided to take a withdrawal from my retirement accounts (401k), will it effect my Social Security income? Would that affect how my Social Security benefits are being taxed? If so, how?

Social Security, 401(k)
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November 2016
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It will not affect the amount you receive in Social Security benefits, but it will affect how much of your benefits are taxed. Your withdrawals from a 401(k) are considered income and are calculated as part of your Modified Adjusted Gross Income (AGI) on your tax return. It can be complicated in determining how much of your Social Security payments are taxable. This is an example of how the calculation works to figure out how much of your Social Security will be taxed.

  1. Add 50% of your Social Security income to all of your other income. For ex. if you received $20,000 in social security payments you use $10,000. You then add the $10,000 to all of your other income of $25,000 (including retirement plan distributions, non-taxable interest, and pension income) for a total of $35,000 MAGI. Therefore $10,000 of your Social Security will become taxable to you which is 50% of your Social Security payments.
  2. The amounts below are the determining amounts to see if your Social Security payments are taxable.
    • If your MAGI is more than $25,000 and you file as Single or Head-of-Household, then you will pay tax on 50% of your Social Security payments.
    • If your MAGI is more than $32,000 and you file as Married Filing Jointly you will, then pay tax on 50% of your Socials Security payments.
    • If your MAGI is more than $34,000 and you file as Single or Head of Household, then you will pay tax on 85% of your Social Security payments.
    • If your MAGI is more than $44,000 and you file as Married Filing Jointly, you will pay tax on 85% of your Social Security pavements.

You can view more from the following website https://www.ssa.gov/planners/taxes.html

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