social security Archives - Arkagos Advisors

The taxation of Social Security Benefits is often a shock to most people as it is commonly assumed that after age 70, those benefits are not taxed. The taxation of benefits is based on your income which also includes investment income and non-taxable bond interest irrespective of age.

If you have a combined income greater than $34,000 annually ($25,000 for single filers), then a portion of your benefits will be taxed regardless of age. Also note that RMD’s (required minimum distributions) are considered income and will add to your base for calculating how much of your benefits are taxed.

This is a great article from AARP that explains the details and caveats for the taxation of your retirement benefits. If you have further questions or if can assist you with better understanding your unique situation, please contact my office on 703-535-5921 or send an email to [email protected].

https://www.aarp.org/retirement/social-security/questions-answers/how-is-ss-taxed.html

IF YOU ARE A WOMAN, THIS QUESTION BECOMES FAR MORE CRITICAL AS YOU PLAN AHEAD FOR RETIREMENT INCOME- WHETHER SINGLE OR MARRIED

When social security was created in the 1930’s, the primary roles of women were drastically different than today and when calculating the number of extended years in retirement and years spent in retirement as a single woman, the application of those benefits has changed dramatically.

If you are a woman who will be counting on social security to be your primary source of income during retirement, I would strongly encourage you to sit down with a financial planner, preferably someone with a CFP designation. This article posted by Lorie Konish with CNBC.com explains many things that should be considered when factoring in Social Security Benefits as a part of your plan for retirement income:

https://www.cnbc.com/2019/01/18/why-the-stakes-are-higher-for-women-when-claiming-social-security.html

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