Would liquidating a nonqualified annuity with over $1 million in gains lower my monthly Social Security check?

Aug 15, 2019

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I'm 80 years old and have been fully retired since age 62. If I liquidate a nonqualified annuity that has over $1 million in gains, will this lower my monthly Social Security check?

This will not change your Social Security check, but it could increase the cost of your monthly Medicare premium and increase the amount of federal income tax you pay on your Social Security benefits. You may want to consult with your CPA to do some financial modeling to determine the best financial plan based upon your specific circumstances. 

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: Paul K. Rudoy, CPA, PFS, is managing partner of H2R CPA in Pittsburgh, Pa.

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