Latest News
Taxation of your Social Security Benefits Should be Part of Your Retirement Plan - The Motley Fool
When planning for retirement, carefully assess the tax implications of your Social Security benefits. The “One Big Beautiful Bill” currently provides an extra $6,000 tax deduction for those 65 or older, helping reduce taxable benefits. However, some benefits may still be taxed, and this deduction is only available through 2028; its extension beyond that is uncertain.
Keith Speights has written an article with useful tips for reducing taxes on your Social Security benefits, but he doesn’t address how Roth IRA or 401(k) conversions can affect Medicare premiums. Your Medicare Part B and D costs are set by your modified adjusted gross income (MAGI), which includes half your Social Security benefits and non-taxable interest added to your AGI. If MAGI exceeds $109,000 (individual) or $218,000 (married), you could face higher Medicare premiums due to the Income-Related Monthly Adjustment Amount rule, known as IRMAA. These premiums reflect your income from two years prior, so an increase in MAGI can erase tax savings for at least a year. To minimize this, consider converting IRAs or 401(k)s to Roth accounts before turning 63 and before starting Social Security.
Read Keith Speights’ full article for more tips by clicking here …
The link provided above connects readers to the full content of the posted article. The URL (Internet address) for this link is valid on the posted date; socialsecurityreport.org cannot guarantee the duration of the link’s validity. Also, the opinions expressed in these postings are the viewpoints of the original source and are not explicitly endorsed by AMAC, Inc.; the AMAC Foundation, Inc.; or socialsecurityreport.org.