How Can the Wealthy Cut Taxes on Their Social Security Benefits?

Everyone works a lifetime with the idea that at some point they can retire and collect Social Security benefits throughout their so-called “golden years.” However, when it comes to Social Security, this year is not a good time to be a high-income earner. Medicare Part B Premiums are expected to rise for high-income retirees. So, that means if you fall into this category then you should be looking for ways to cut back on your SS benefit taxes. Here are a few ways you can do this.

One step high-income earners can take to reduce their tax bill is to actually delay their benefits. By waiting until the age of 70 to claim your benefits instead of starting at age 62 you can actually increase your benefit by 76 percent. That also means you won’t be paying taxes on any SS benefits for several more years.

Another option is to open a Roth IRA, which allows your money to grow tax-free. The distributions are also tax-free, so you can be a great way to lower retirement income and thus lower your tax bill, as well. Deferred annuities are another possible way to let your money grow tax-free if you own assets that throw off income that you don’t really need. You can also try drawing a little extra by selling a capital asset if your retirement funds aren’t quite sufficient. This allows you to avoid the higher SS benefit taxes but still have enough to live on.

If you are worried about paying too much in Social Security benefit taxes because you are a high earner, then contact GROCO for guidance. Just call 1-877-CPA-2006, or click here.

Posted in
David Cline

How to Ensure Success in Your Career | David Cline

About David Cline David Cline is one of two founding partners of Global Allies. David is a seasoned veteran with over 30 years of experience in the hospitality and home furnishings industry. David along with his partner, Isaac Kubryk are committed to providing a higher level of product quality and service to the hospitality industry.…

Mandy Barton

Step One Jump! | Mandy Barton

  About Mandy Barton Mandy Barton found her purpose, to increase the good of life around her. That’s it. One simple premise, one strong principle that has sprouted an empire built to better yourself, better others and in turn better the world around you. That’s what Mandy Barton believes in. From the moment she decided…

Insynctive | Gary Goldstein

Insynctive | Gary Goldstein

Transcript, Insynctive | Gary Goldstein Alan Welcome back. I’m visiting here today with Gary Goldstein. And Gary is the founder of instinctive. Gary, welcome to today’s show, Gary Hey thanks Alan! I appreciate you having me here today. Alan So Gary, for the listeners, can you give me your background and how you got to…

Jay Brasher; philanthropy

How I Got Into Philanthropy | Jay Brasher

  About Jay Brasher Back in the 1970’s Jay and his wife made the decision to be be involved the Indian Placement Program by taking an 8 year old Navajo girl into their home during the school year so she could attend school where the Brasher’s lived- it was a big deal at the time…