Recent Retirees Wish They’d Been Better Prepared for Taxes
Taxes. Kailey Hagen’s article here notes that 34% of recent retirees say they wish they’d been better prepared for taxes than they were, according to a recent Nationwide survey. Hagen’s piece takes a closer look at how the government taxes retirement savings accounts like 401k plans and IRAs, capital gains on other investment income, and taxes on Social Security benefits. In short, while it’s impossible to escape taxes altogether, minimizing them is possible. Delaying Social Security as long as possible past age 62 until the age 70 max will help reduce your combined income so you don’t owe taxes on your Social Security benefits at all. Also, while the government will finally want some income tax to be paid after all the years of deferrals on retirement accounts, being smart with these account withdrawals can also help. Read the full piece from The Motley Fool here.
The AMAC Foundation offers a free-to-the-public advisory service to all folks ageing into–or already in–Social Security. This service provides guidance in understanding the complexities of Social Security and the myriad rules and regulations associated with the process for claiming benefits, with NSSA-Certified Social Security Advisors available via email or telephone to discuss options. Learn more about this service via the Foundation’s website.