Did you know that an increasing number of retirees pay federal income tax on their Social Security benefits each year? That’s because Social Security benefits become taxable when a retiree’s income exceeds certain limits. Since the income thresholds used to determine if benefits are subject to taxation haven’t been adjusted for inflation since they were established in 1984 and 1993, respectively, each year more retirees find themselves paying taxes on up to 85% of their Social Security retirement benefits.
For many retirees, a comprehensive approach to planning that encompasses tax, investments, and Social Security may help limit or reduce the burden of Social Security taxes by addressing:
Whether you’re retired or preparing to retire, it’s important to obtain the insight and guidance to help protect your retirement income through tax-advantaged strategies aligned with your needs and goals. Reach out if you have questions or would like to schedule a consultation.
This communication is designed to provide accurate and authoritative information on the subjects covered. It is not, however, intended to provide specific legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought.
The Impact of Taxes on Retirement Income
| June 05, 2020