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Dealing With Social Security’s Income Tax Consequences

One of the most unpleasant issues many Social Security beneficiaries encounter is the fact that their benefit may be subject to federal income tax. Not only is it unpleasant, but it’s also often not anticipated during the retirement cash flow planning process. For this reason, it’s extremely important to be aware of how the taxation process works, and to give thought to ways one can minimize its impact on your retirement finances. The Motley Fool’s Dan Caplinger, in a post on their website, provides an overview of the mechanics of benefit taxation, and provides some thoughts on mitigating the impact on your situation. Check out his post here…

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