IRS Meets SSA: How Taxes Can Make or Break Your Social Security Strategy
Confused by Social Security?
Most retirees focus on the size of their Social Security check. But here’s the truth: It’s not what you “get” — it’s what you “keep.” And the IRS has a major say in that.
Social Security Is Taxed Based on “Provisional Income”
This includes AGI, half of your Social Security benefit, and tax-exempt interest. Once your provisional income crosses key thresholds, up to 85% of your Social Security becomes taxable.
The Tax Torpedo
This occurs when IRA withdrawals or RMDs push you into a higher bracket and trigger steep taxes on your Social Security. This can feel like a “double hit.”
Taxes are one of the biggest drivers of optimal Social Security timing.
Let’s review your numbers and avoid unnecessary taxes.
How to Avoid the Tax Torpedo
Strategies include delaying Social Security, drawing from IRA before filing, and spreading Roth conversions. This is why timing matters.
About Author
Ray R. Harris
Ray R. Harris, RSSA®, partners with tax and legal professionals to provide specialized Social Security claiming analysis for high-net-worth clients aged 58–70. A former executive with an MBA and background in Finance, Ray mitigates liability for his partners by ensuring their clients optimize spousal benefits, tax efficiency, and lifetime income.
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