In our previous piece, we covered the confusion about Social Security taxes that emerged due to recent legislation.
While federal taxes on Social Security haven’t changed, there are still ways to reduce how much of your benefit is taxed. With a little planning, retirees can legally lower their tax burden and stretch their income further.
Here are a few strategies:
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Manage your taxable income. Keeping your income under certain thresholds can minimize the portion of your Social Security that’s taxed.
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Use Roth accounts. Withdrawals from Roth IRAs don’t count as taxable income.
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Delay benefits if possible. Waiting to claim can increase your monthly benefit, and may improve your tax situation later.
Even small adjustments to your withdrawal strategy or income sources can make a big difference.
It’s your money, and you’ve earned it. A smart tax strategy helps you keep more of what’s yours and build the retirement you deserve.
For more tips on saving money in retirement, bookmark our page, and sign our petition to protect the future of Social Security.
