Reported 12 months ago
Retirees may face the Social Security tax torpedo, where 50% to 85% of their Social Security benefits can be taxed based on their income level. To avoid this, strategies include using a Roth IRA to reduce taxable income, living in tax-friendly states, donating IRA income to charity, investing in a QLAC, staying within lower tax brackets, delaying Social Security, and consulting a financial advisor for personalized guidance. Understanding and planning for the Social Security tax torpedo can help retirees optimize their retirement income.
Source: YAHOO