Reported about 2 months ago
In a recent podcast, Suze Orman explained the 'Social Security tax torpedo', which causes retirees to face significant tax implications when they withdraw from traditional retirement accounts. Orman advocates for Roth IRAs, emphasizing that they do not require minimum distributions and withdrawals do not increase taxable income for Social Security benefits. She asserts that prioritizing Roth accounts can help retirees keep more of their Social Security income tax-free, suggesting this strategy could be crucial for effective retirement planning.
Source: YAHOO