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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. :))
If I were rich, I'd have the time that I lack, to sit in the synagogue and pray.
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If I were a rich man...

#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.
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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#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.





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