Q&A of the Week November 10, 2021

Question:

Will employers receive tax penalties for rehiring retirees due to labor shortages?

Answer:

In general, the tax status of pension plans will not be risked if retirees are rehired or if experienced employees over retirement age stay employed by the business.

Also, employees who return to work after retirement will, in general, continue to receive retirement benefits after they are rehired.

For more information, please contact a tax professional or visit IRS.org.