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Paying tithing in retirement


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#1 Sunday21

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Posted 12 November 2013 - 04:56 PM

Dear Friends, When paying tithing in retirement, do you pay tithing on money that you withdraw from savings? Do you pay money on pension income?:confused:

#2 DHK

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Posted 12 November 2013 - 05:37 PM

As a professional in retirement & financial services, my answer may be a little too detailed. That said, here's my recommendation: Whatever assets you use to generate your regular retirement income stream, are what you may want to tithe. For example: You take a regular distribution from an IRA, 401(k), SSI, and a regular savings withdrawal. Add them up and pay 10% as a tithe. This is overly simplistic. You may think that taking money from savings is a return of principal and doesn't need to be tithed. And, in a financial sense, you would be correct. My opinion would be to never short-change the Lord. Some years, you might not pay as much as in other years. It'll all even out, and it's about what's in your heart when you go to tithing settlement - to be able to tell your Bishop that you are a full tithe payer. The Lord never said "only pay tithes on what income you are also taxed". He also never said that you had to pay a tax on all your accumulated wealth. The Lord simply said "10% of your increase".
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#3 Vort

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Posted 12 November 2013 - 09:59 PM

Dear Friends,

When paying tithing in retirement, do you pay tithing on money that you withdraw from savings? Do you pay money on pension income?:confused:


I intend to tithe both sources, should I be fortunate enough to have them.
As if anyone could knowingly commit sin without being changed both in spirit, body, and mind. Let me say this again, sin changes who we are! --james12
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#4 Tobit

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Posted 13 November 2013 - 05:57 AM

I read something once several years ago, maybe on this site, that struck me as a good method of dealing with this, and now that i am actually earning an income I am putting it to use. Granted, it doesn't really help someone already in retirement, but maybe it will give another perspective to those looking to the future. Basically, as I am saving for retirement, I do not tithe on money I put into my 401k, IRA, etc. When I retire, I'll tithe on all withdrawals, without having to worry about the principal/return of any of it.

#5 Sharky

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Posted 13 November 2013 - 09:11 AM

When you put money into a 401K or Social Security or even savings, you do with the hope that when you start drawing on those funds that you will actually be getting significantly more then you pay in. Those added earnings that you end up with have not been tithed in any way even if the original funds were tithed. Just for the ease of simplification, I prefer to pay tithes on the gross & when we do draw on retirement funds we again pay tithes on those funds even though the original investment was already tithed. Keeping it a simplified process, even if I pay a little extra, works best for me.

#6 NightSG

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Posted 13 November 2013 - 10:07 PM

Keeping it a simplified process, even if I pay a little extra, works best for me.


I keep asking for a winning lottery ticket so I can simplify it more. One lump sum tithe of 6.4 million and store the rest in the mattress so I don't have to worry about it. The look on the bishop's face at tithing settlement would be worth more than I could ever gain from investing the rest. :D

(It's only gambling if you buy the ticket. Surely He can make one of those laying on the ground a winner.)

#7 NeuroTypical

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Posted 14 November 2013 - 09:06 AM

Basically, as I am saving for retirement, I do not tithe on money I put into my 401k, IRA, etc. When I retire, I'll tithe on all withdrawals, without having to worry about the principal/return of any of it.

This is how I'm doing it too.

At the end of the day, you and the Lord are the only people who can say how to tithe in your situation. If you are ok with your decision, and you figure the Lord is too, then no Mormon can second guess you and tell you you're wrong.

(Although I'm sure you could find a few who would try, if you wanted. :))
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#8 Vort

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Posted 14 November 2013 - 10:23 AM

Basically, as I am saving for retirement, I do not tithe on money I put into my 401k, IRA, etc. When I retire, I'll tithe on all withdrawals, without having to worry about the principal/return of any of it.


Sounds reasonable. I actually do tithe on my 401K/IRA moneys, because I consider them increase: I get the money from work and then choose to put it into an investment. That's my choice. I will not tithe the basis again, but I will tithe any earnings.

On the other hand, I never tithe FICA withholdings. I never get that money, and not by choice. The idea behind FICA/SS is that I will receive that money after retirement. So if I never see the money up front, I don't tithe it up front. If and when I get that money in retirement, I will tithe it then.
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#9 mnn727

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Posted 14 November 2013 - 10:45 AM

I read something once several years ago, maybe on this site, that struck me as a good method of dealing with this, and now that i am actually earning an income I am putting it to use. Granted, it doesn't really help someone already in retirement, but maybe it will give another perspective to those looking to the future.

Basically, as I am saving for retirement, I do not tithe on money I put into my 401k, IRA, etc. When I retire, I'll tithe on all withdrawals, without having to worry about the principal/return of any of it.


That would work, the only thing I would warn is that many people don't have a lot of $$ after retirement.

#10 Still_Small_Voice

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Posted 14 November 2013 - 02:39 PM

Vort, it would be a nice dream if we were to ever collect Social Security for retirement as we all pay into it. If you are under 50 years old now presently you will never collect a dime of retirement funds from Social Security.

I hope I am completely wrong in this statement.

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#11 Smeagums

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Posted 15 November 2013 - 08:01 AM

4 And after that, those who have thus been tithed shall pay one-tenth of all their interest annually; and this shall be a standing law unto them forever, for my holy priesthood, saith the Lord.


I would review the law of tithing in the Doctrine and Covenants and then counsel with the Lord to see how He'd like you to proceed. Enjoy your retirement.

#12 kathysmike

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Posted 15 November 2013 - 05:14 PM

mnn727 I have a question how does not having a lot of money affect the fact that an individual needs to tithe on their annual increase? Have we forgotten the story of the Widow's Mite?My family of 3 survives on just over a thousand dollars of Social Security Disability a month which I gladly pay my tithing on, with the knowledge that if I need the help I can ask and it will be there.

Edited by kathysmike, 15 November 2013 - 05:34 PM.


#13 jlb295

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Posted 06 September 2014 - 08:19 AM

My rule of thumbs are as follows:

(1) The same amount of money is worth more now than the same amount of money later... so I will pay the Lord with the best money (money when earned) and then make a little effort latter to figure out the difference when I retire to pay Him the increase when I receive it (money when earned, again).

(2) You do not know when you will die,.. I do not want to die without being a full-tithe payer and whomever would receive/inherit my 401k funds would not be able to pay tithing for me on it.  How tragic if my 401k funds were used only to pay my debts (e.g. mortgage) and none of what was intended for the Lord went to Him.

(3) It's all the Lord's anyways,... why not take the route of how very much and how very soon we can give to Him so that there can be no question as to our loyalties.

(4) Just because we can't feel the increase now, (e.g. putting money into a 401k) does not mean it is not increase.  I would think based on that simple principle we'd want to pay it when we receive it (despite not having it go directly into our wallets).

 

I hope the above helps someone.

 

If anyone can provide me a more faithful way to pay my tithing, I would be grateful.

 

 



#14 Jimbarrus

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Posted 07 September 2014 - 07:41 PM

We are retired and only get social security.   We pay thithing on it and have never considered not doing so.  The Bishop/s and home teachers never told us we didn't have to.  



#15 Pa Pa

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Posted 09 September 2014 - 07:00 PM

Dear Friends,

When paying tithing in retirement, do you pay tithing on money that you withdraw from savings? Do you pay money on pension income?:confused:

When I reach the point that I draw out more that I put it...then I will pay. That date is drawing near.
Zealot...One who is illuminated and blinded by the same light. (Lee)

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(Think about that in relation to spirituality)

#16 StrawberryFields

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Posted 04 October 2014 - 11:08 PM

Interesting.
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#17 Iggy

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Posted 05 October 2014 - 12:15 PM

We paid tithing on the income that was taxed. Husband had money diverted to IRA and it was NOT taxed. Didn't pay tithing on the untaxed diverted money.

 

In the USA the employer pays half of your SS$ - so when you retire and you get your SS$, you get what you put in (which was taxed) and the half your employer put in (not taxed by you).

 

Husband also gets his pension (which was NOT taxed). So we now pay tithing on only 1/2 of the SS$ and on all of the pension money. 

When he draws money out of his pension from his previous life - before he was LDS - he doesn't want to pay tithing on it. I pay tithing on it any way and just don't tell him. It is increase after all. Yep, Husband retired twice. 

 

I had been paying tithing for four years now on the amount Husband told me to. Well, I had to do an audit on our income and expenses since we retired and discovered we have been over paying our tithing by nearly 50%. Can't do much about 2011 -2013, but for 2014 I can. What has been paid to date in 2014 is 12.5% tithe on our income for the entire year. I asked Husband where he got the $ tithing amount. He said it sounded like a good round number. 

 

So, I showed him the result of the audit, and we reconfigured the tithe amount. We have been really biting the bullet the last two weeks of each and every month. Often having to draw money out of the IRA account every three months. Not good! With the new budgeted amount - we will only be biting the bullet the last few days of the month IF I am not careful with the household money (buying food storage cupboards that are NOT on a really good sale). 


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#18 Blackmarch

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Posted 23 October 2014 - 09:21 AM

Dear Friends, When paying tithing in retirement, do you pay tithing on money that you withdraw from savings? Do you pay money on pension income? :confused:

if its money you already payed tithing on then no you don't.



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