Tithing On Retirement Income Lds

Okay, so picture this: I’m at the café, right? Latte in hand, catching up with my buddy, Dave. Dave just retired. He’s finally living the dream – golfing every day, traveling the world (or at least Branson, Missouri), and generally being a big-shot retiree. But then, a cloud of financial confusion drifted over his bliss.

“So,” Dave says, looking like he’s about to ask me if pineapple belongs on pizza (it does, fight me), “What about tithing? Now that I’m not, you know, working working.”

Ah, tithing. The age-old question. The 10% principle. The thing that makes some people sweat more than a toddler after a sugar rush. So, I told Dave – and now I'm telling you – let’s break it down, shall we?

The Golden Rule (…of Tithing)

First, let's get the official word out of the way. For members of The Church of Jesus Christ of Latter-day Saints, tithing is donating 10% of your increase to the Church. Now, the real fun begins figuring out what exactly "increase" means when you're sipping margaritas on a beach.

The First Presidency has stated that “increase” means income. So, technically, anything that increases your wealth is considered your income. But, things get interesting in retirement.

Retirement Income: A Hilarious Hodgepodge

Retirement income isn't just a paycheck anymore. It's a glorious mishmash of stuff: Social Security, pensions, 401(k) distributions, investment returns, and maybe even that weird antique doll collection you're secretly hoping to unload for a fortune.

So, do you tithe on all of it? That's where things get personal, and a little bit faith-based. There’s no official “Retirement Tithing Calculator 5000” (patent pending… maybe). It really comes down to you and your understanding of the principle, and having a good talk with the Big Guy upstairs.

Let's look at some common income sources and how people approach tithing them:

• Social Security: Some tithe on this, viewing it as income. Others might reason that they already tithed on the income that contributed to Social Security. It’s like, did you already pay for the movie, or are you buying another ticket?
• Pensions: Similar to Social Security, some tithe and some don't, depending on their previous tithing history.
• 401(k) and IRA Distributions: This is where the plot thickens! If you never tithed on the money you put into these accounts (pre-tax), then many believe you should tithe on the distributions you take out. But, If you did tithe on that income initially, you might only tithe on the earnings generated within the account.
• Investment Returns (Dividends, Interest, Capital Gains): These are generally considered income and are tithed upon. Imagine those dividends are like little blessings raining down from the financial heavens!
• Antique Doll Collection Sale: Okay, maybe not everyone has one, but if you suddenly become a millionaire thanks to your Beanie Baby collection, most would consider that an increase and tithe accordingly.

The “Previously Tithed” Loophole (Maybe)

The big question that comes up a lot is about double-tithing. Imagine tithing on your income before it went into your retirement account, and then tithing again when you take it out. Feels a little… much, right?

That’s why many people only tithe on the growth of their retirement accounts. They figure they already paid their dues on the principal. Think of it like planting a seed. You tithed on the seed itself. Now you're just tithing on the fruit the tree produces!

However, remember: this is not official doctrine. This is just a common understanding that many members come to on their own. Always consult with the Spirit and your own conscience. And maybe a good accountant. Just saying.

The Bottom Line: Be Honest, Be Prayerful, Be Happy

Ultimately, the decision of how to tithe on retirement income is a personal one. The goal isn't to find loopholes or squeeze by. It's about living the principle of tithing with honesty and integrity, and finding joy in contributing to the Lord’s work.

Don't let tithing become a source of stress or anxiety in your golden years. Instead, see it as an opportunity to express gratitude for your blessings and to help build the Kingdom. After all, what good is a stress-free retirement if you're stressing about how to enjoy it?

So, I told Dave all this, and he seemed a lot less stressed. He still wasn't sure about the doll collection (neither am I, Dave, neither am I), but he had a better framework to make his own decisions.

Now, if you'll excuse me, I have a latte to finish and a very important game of online solitaire to get back to. My own retirement planning awaits!