I just got a hard copy check for my July monthly pension even though I filled out paperwork to have it direct deposited. I notice only state and federal taxes are deducted, not Medicare. I thought Medicare would be deducted. Anyone else take the annuity instead of the lump sum and ha e different deductions?
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Thanks, yes I chose the annuity. Thanks for the info. OP
I take it, your monthly pension check is for the annuity? Congratulations on receiving your first payment. Yes, the first payment is typically received in check form. By next month, Chevron would have set up your request for direct deposits. You will still get a paper statement in the mail, but the annuity is payable on the last business day of the month. I elected to not have any taxes deducted from my annuity payments. The choice is yours to make and you can elect to change it at any time. The only taxes that impact your retirement income is federal taxes, and depending where you live, state taxes too. But Social Security and Medicare are exempted. I prefer to set aside my federal tax liability and make a check out to the IRS when I complete my 1040 tax return. I'm in control and don't have to wait for a refund, like I did when I was a working stiff. No more of that for me.