Managing taxation of your Social Security benefits
Many seniors are surprised to find that their Social Security benefits may be taxable if their retirement income exceeds certain thresholds set by the Internal Revenue Service. The thresholds – $25,000 for single filers and $32,000 for married filing jointly – when exceeded mean that up to 85% of your Social Security benefit amount will be subject to income tax. It’s a hard truth, but one that can be legally managed if properly handled starting prior to the time when you actually claim your benefits. This Motley Fool article by Wendy Connick discusses how a Roth IRA can be used to to reduce or even eliminate taxes on your Social Security benefits. Click here to read more.