Income Taxes, Social Security, and Retirement Planning
Retirement planning can be a pretty complex undertaking, especially for those with an investment portfolio which includes tax-deferred savings. Required Minimum Distributions (RMDs) from tax-deferred investments must now start at age 72, and since RMDs will affect your income tax obligation, careful planning for your income in the earlier years is called for. Social Security, of course, will almost always play an important role in retirement planning, so maximizing your SS benefit to achieve financial comfort in latter years is often prudent. But understanding that Social Security benefits may also contribute to your income tax obligation will help you decide when to claim it. All of this is discussed in this Benefits Pro article by Martha Shedden, an expert in both retirement planning and Social Security matters. Click here to read more.