Does a withdrawal to cost basis or a loan from a life insurance policy have a taxable impact on Social Security benefits? $($Check all that apply$)$ Yes it counts as income toward taxable limited on Social Security Benefits. Only withdrawals in excess of cost basis are considered income and would impact social security taxation. Only if the withdrawal or loan exceeds the $$25,000$ or $ $35,000$ income limits $.$ No$-$ the loan or withdrawal to cost basis are none taxable events and thus, no impact on Social Security Benefits