Reduce Your Social Security Tax Bill/ January 31st, 2021
Those with high incomes are most likely to be hit with increased taxes on their Social Security benefits this years. Here are some possible ways that you can limit those taxes, for those who expect to owe some:
- Delay your benefits. If you wait to claim your benefits until you are 70, you could increase your benefits by up to 76%.
- Think about annuities. Deferred annuities can help you deal with assets that are throwing off income that isn’t needed.
- Consider a Roth IRA. You can lower your income in retirement and get your money to grow tax free with a Roth retirement account.
- Draw on a home equity line of credit. The money you get from this is not subject to tax.
- Sell capital assets. This can be a better choice than drawing down more on your IRA.
Click the image below to see the full infographic.