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Retirement Planning: Be Aware of How Benefits Are Taxed
It often comes as a surprise to the newly retired to find out that a significant portion of their Social Security benefits are subject to federal income tax. And if their cash flow planning has not taken that into account, it can become a problem in making ends meet. To make matters even more severe, there are still 12 states in the U.S. that levy an income tax on Social Security benefits so, if you reside in one of those, it’s critical to plan for that as well. It can be a somewhat complicated part of one’s retirement income planning process, but being aware of the rules ahead of time can help you avoid unpleasant surprises. In a post today on fool.com, The Motley Fool’s Matthew Frankel, CFP® provides a summary of how this portion of the retirement financing process works. Check it out here.
This posting is presented for informational purposes only and does not represent legal or financial guidance. Any opinions or interpretations presented are either those of the original author or, in the case of articles authored by the AMAC Foundation, are the opinions of AMAC Foundation staff, originally trained and accredited by the National Social Security Association (NSSA) and certified via the AMAC Foundation. Any links included in the article are valid on the posted date; socialsecurityreport.org cannot guarantee the duration of the links’ validity. NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (https://amacfoundation.org/services/) or email us at ssadvisor@amacfoundation.org. Because we are a non-profit organization, there is no charge for these services.