Railroad retirement basics
Railroad workers are unique in that they have their own separate government sponsored retirement system. In this video, I share how the system came to be and how it works, how benefits are taxed, and how you can have adequate taxes withheld from the benefits to avoid balances due.
0:00 Introduction
0:33 The Railroad Retirement System
2:07 Tier 1 and Tier 2 Benefits
3:16 How benefits are taxed
5:45 Having tax withheld from RR Benefits
7:02 Conclusion
For more information on how contributory pensions are taxed, click here: • Is My Pension Taxable?
To learn why and how Social Security benefits are taxed, click here: • Why is my Social Security taxable?
RESOURCES AND ADDITIONAL INFORMATION:
IRS Publication 915: "Social Security and Railroad Retirement Benefits":
https://www.irs.gov/pub/irs-pdf/p915.pdf
IRS Form W4-V: "Voluntary Withholding Request" (used for withholding Tier 1 benefits): https://www.irs.gov/pub/irs-pdf/fw4v.pdf
IRS From W4-P: “Withholding Certificate for Periodic Pension or Annuity Payments.” https://www.irs.gov/pub/irs-pdf/fw4p.pdf
A wealth of information can be found at the Railroad Retirement Board's website at https://rrb.gov
Much of the historical and background information came from this site.
Nerdwallet: "Railroad Retirement Board: What It Is, How It works": https://www.nerdwallet.com/article/in...
The Tax Geek on the Site Formerly Known as Twitter: www.x.com@taxgeekusa
The Tax Geek on Reddit: www.reddit.com/r/askataxgeek
Image and footage credits:
Storyblocks.com
Wikimedia Commons
The Rail Geek @railgeekusa
The image of the Old Railroad Workers was generated by Bing Image Creator. Any resemblance between the persons pictured in this image and any person, living or dead, is incidental and not intended.
NO OTHER ARTIFICIAL INTELLIGENCE WAS USED TO WRITE, EDIT, ANIMATE, VOICE, OR EDIT THIS VIDEO
Intro Music: "Bluesy Vibes" - Doug Maxwell - YouTube Creator Music
Outro Music: "Modern Attempt" - Track Tribe under license from YouTube Creator Music
DISCLAIMER: This video is for educational and informational purposes only. It is not intended to render tax advice or financial advice for individual situations. If you have questions regarding your particular situation, please consult with a qualified tax or financial professional.