Social Security

One way you can minimize taxes on Social Security is by lowering your other income, especially investment income. But you should be aware that municipal bond interest, which is usually tax free, counts as income for the purpose of calculating the tax on Social Security benefits. A second way is to anticipate the required minimum distributions or RMDs from your qualified plans, which may cause you to be in a higher tax bracket and may cause some of your Social Security benefits to be taxable. A third way to minimize taxes on Social Security is to consider converting a traditional IRA into a Roth IRA, which will generate tax free income. Another way is to reduce your expenses by paying down debt and adopting a simpler lifestyle so you can make do with less income. Finally, it may sound somewhat basic but it makes a lot of sense… If you delay claiming benefits, then the less years you will be subject to being taxed on Social Security.

There are a few results we expect you to have when you come in to meet with us: A better understanding of Social Security, an assessment of when you can retire if you haven’t already, learning about ways to receive more income from your current retirement assets in order to prevent the Income Gap, possibly creating passive income, analyzing your pension payout if you have a pension, and finally replacing lost income with tax-free retirement income.