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.
Scott McNealy- What Projects I’m Currently Working On
About Scott McNealy- Silicon Valley Icon Scott McNealy co-founded Sun Microsystems, Inc.in 1982, serving as Chief Executive Officer and Board Chairman for over 22 years. During his tenure, McNealy transformed Sun from a Silicon Valley start-up to a leading provider of network computing. In October 2011, McNealy announced his next venture, Wayin. Wayin offers…
Philanthropy is Love | Pamela Hawley
Transcript, Philanthropy is Love | Pamela Hawley: Pamela Hawley: Philanthropy. I think the way people look at it today isn’t really correct. They look at it as giving of money. But really what it is is people, it’s the love of people. It’s all about people. It’s about the love of humanity. So what I…
Real Audio Video | Johnathan Law
About Johnathan Law Johnathan Law received his formal education in culinary arts. While recovering from a car accident he found he built himself a home theater system- when his family and friends wanted one as well, he decided that it was more fun than working in food services. Johnathan is the cofounder of Real…
How to Change the Culture of an Organization | Prasad Kaipa
About Prasad Kaipa Prasad has been an advisor and coach focusing on innovation and leadership since 1990 for about 120 C-level executives in Global Fortune 500 companies. Prasad’s unique competence is in helping his clients find their next significant step and take it. He found that unless he helps clients to examine their signature…