Taxes are an inevitable part of life, and retirement is no exception. When it comes to Social Security benefits, understanding how they are taxed can help you better manage your income in retirement. The IRS uses a concept called “combined income” along with your filing status to determine the amount of your benefits that may be subject to taxes.
For example, if you receive $36,000 a year from Social Security as a single filer and have no other income, none of your benefits may be taxable. However, most retirees have additional sources of income, which can include retirement account withdrawals, pensions, part-time wages, and more. When you factor in these additional income sources, you may end up owing taxes on up to 85% of your total benefits.
At Extreme Investor Network, we understand the importance of maximizing your retirement income while minimizing taxes. One way to potentially reduce the taxes on your Social Security benefits is by strategically managing your income sources. This can include utilizing Roth accounts, generating income from non-taxable sources, or adjusting your income by working less or taking smaller withdrawals from retirement accounts.
Our team of financial experts can help you develop a personalized strategy for managing your retirement income and Social Security benefits. By working with a financial advisor, you can explore various options to reduce your tax burden and optimize your retirement savings.
When it comes to retirement planning, every decision matters. At Extreme Investor Network, we provide valuable insights and resources to help you make informed choices about your finances. Whether you’re looking to maximize your Social Security benefits or create a comprehensive retirement income plan, we’re here to help you achieve your financial goals.
Don’t navigate the complexities of retirement planning alone. Take advantage of the expertise and guidance offered by Extreme Investor Network to secure your financial future and make the most of your retirement years. With our team by your side, you can feel confident about your financial decisions and enjoy a comfortable retirement lifestyle.