Reported 1 day ago
As you transition into retirement and begin receiving Social Security benefits, it's crucial to understand how these benefits can be taxed. Depending on your provisional income, you may be taxed on 0%, 50%, or 85% of your Social Security benefits. To optimize your tax situation, consider delaying income from 401(k) and IRA distributions, converting accounts to Roth IRAs, or utilizing qualified charitable distributions to keep your provisional income lower. Consulting a financial advisor can help you devise a strategy that minimizes your tax liabilities while maximizing your retirement income.
Source: YAHOO