choose the type of fund that would most likely be reported in the examples given. This is a topic that many people are looking for. star-trek-voyager.net is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, star-trek-voyager.net would like to introduce to you How to Reduce or Eliminate Taxes On Social Security Benefits! (How to Minimize Taxes In Retirement). Following along are instructions in the video below:
“You re watching this video you have neither already begun taking your social security benefits benefits or you re thinking nabout taking your social security benefits soon. This is an time nwhen you finally start to receive money back on all the social security and nmedicare taxes you pay it in throughout your life. But don t worry you re not ndone paying taxes on your social security just yet nnow you get the privilege of paying income taxes on your social security nbenefits as well 52 of americans pay income tax on their nannual social security benefits. Luckily for you fine folks i m going to share a nfew tax saving tips to help you minimize the amount of taxes you pay on your nsocial security as much as possible.
Although you might have to pay some ntaxes on your social security benefits. The good news is at least 15 of the ntotal amount of social security income. You receive during the year will be ncompletely tax free. Now the bad news is on the flip side of that that means 50 nup to 85 of the total amount of income you receive from social security.
Each nyear might be subject to income taxes in this video. You re about to learn how a nlittle. Upfront planning can help you minimize your taxes especially on your nsocial security benefits. Let s begin i have six tax saving tips and all for you nguys today.
The first way to begin saving taxes on nyour social. Security. Benefits and my favorite way is the roth ira. Both you nand your spouse can have one qualified.
Roth ira distributions are not factored ninto the social security income. Equation which is freaking awesome as an example a person could receive. N. 25000 a year and dividend distributions from their.
Roth ira and n25000. A year in social security. Benefits and still pay zero in tax nthat s a full four thousand dollars a month that you get to keep and keep all nof. It the irs can t touch that number to begin taking taxable ira distributions nbefore drawing social security this second strategy takes a bit of planning nbut it can be really powerful of course.
We re assuming in this ninstance that you re older than 59. And a half and can begin taking distributions. Nfrom. Your 401k or traditional taxable ira.
By taking some ira..
Distributions or n401k. Distributions. Early it allows a person to delay drawing from their nsocial security. This does two things first by delaying their social security nbenefits.
It will allow them to draw higher social security benefits in the nfuture secondly by drawing some of their ira or 401k. They will be able to take nlower required minimum distributions in the future. The net. Result is assuming nall.
The rules are the same you can hire social security benefit distributions in nthe future. And you minimize your taxable income from other sources nnow this strategy could go very wrong if a person blows their distributions from ntheir retirement account. However. A disciplined person could always reinvest nthat money into growth stocks or dividend.
Paying stocks within. A taxable nbrokerage. Account. And grow this money.
Even further with careful thought out nplanning. This strategy could work very very well for future retirees. Number three. If you re feeling ncharitable.
This. One might be for you remember you do not always have to take nyour required minimum distribution you could always donate that money or donate nthe rmd. If you don t need the income and can live. Without it and want to minimize nyour taxes.
Even further you can always choose to donate a portion or npotentially. All of your ira distribution to a qualified charity now working as a ncpa. I ve seen this done several times and it works very effectively people who nwould normally take ten twenty thousand dollars of a required minimum eyre ndistribution that money goes directly to a charity. It never comes to them at all nit goes directly to the charity of their choice and if let s say it s twenty nthousand dollars.
They donate well now there s twenty thousand dollars..
That is nno longer subject to income tax. Which also reduces all the amount of other ntaxes. They pay on their other forms of income like social security. So it works nvery well.
If you have a charitable cause. You re passionate about and feel like ndonating number four actually involves quitting quit. What you ask well i m nactually encouraging you to consider quitting your part time job. Now normally ni would not suggest someone quit their part time job.
But when it comes to nminimizing one s income taxes on their social security benefits. This might nactually make sense if a person can afford to do so if you drastically nreduce your income. It will also reduce your income taxes you have to pay and nwithout those taxes now sure it s gonna feel like a pay cut. But without those nadditional taxes you might be paying anyways.
It might not feel like that big nof. A pay cut now remember when it comes to minimizing income taxes you want to nreduce your taxable income as much as possible and that is one strategy you ncan do if you can afford to do so. So please consider it okay guys number five nis. Very practical and speaking of reducing one s taxable income.
Let s talk nabout debt and how that factors into the big picture of your retirement. And what nincome is subject to taxation paying off your debt. Before you retire is one of nthe best. Things you can do to help you reduce your taxes the less taxable nincome.
You need to live off of the less tax you will pay not only that is having nno debt increase is your monthly cashflow it increases nyour monthly cash flow in that allows you to draw down your 401k and other ninvestment accounts at a slower pace because you no longer need that nadditional income to service that debt. Unfortunately. Most debt payments are no nlonger tax deductible are helping people with their taxes unless they own a nbusiness or a rental real estate under the new tax laws. So in my opinion.
If nyou re getting ready to retire are already retired. I think it s time to get nrid of that debt if you can now of course. You can still deduct your nmortgage interest. But that s assuming you have enough items deductions in norder to itemize that remember the standard deduction basically just ndoubled so people are gonna be less and less likely to get any taxable benefit nfrom having a whole mortgage interest.
Let s move on to the sixth and final tip nnow..
I m not gonna sugarcoat this guys. This niks topic is a very emotional ntopic for most people and you know most people i don t think would be nemotionally ready to do this so. But let s talk about it anyways because this nvideo is all about how to minimize taxes on your social security benefits now nmost people cannot begin to emotionally fathom. The idea of delaying their social nsecurity benefits one day longer than they re entitled to it nhowever.
If you re interested in potentially saving thousands upon nthousands of dollars of income taxes. While waiting for an even higher monthly nbenefit payout. This strategy is one that you actually want to consider now i nrealize. I m fully aware that most people will not even begin to entertain the nidea of delaying their social security benefits and that s fine.
It s totally up nto you i m not gonna tell you what to do with your retirement your money. But if nyou come here to learn how to minimize your taxes as much as possible. This is nwhy you might want to listen to this strategy. What i ve found from experience nin.
The real world is the people who are very well off as those with substantial namount of retirement assets are the ones who could afford to take a lower social nsecurity. Benefit payout and they re also much more likely to delay taking those nsocial security benefits at age at full retirement age or closer to age 60 now nwhen. I talk about this strategy. I m not suggesting you necessarily wait till age n70.
But i i m suggesting at least wait until ncloser to full retirement age or at full retirement age from what is found is working as a cpa nin the real world. The people who really need or could benefit from a higher nsocial security payment because they have very little to no retirement assets noutside of social security are the ones. I find the most taking social security. Nat.
62. So the poor they are the more likely. They are to take a lower social nsecurity benefit payment now i understand that you re gonna do what nyou re gonna do so i m not gonna try to convince you to the lay your social nsecurity benefits. But if that s a tax saving strategy you want to consider i nwould at least suggest you consider it because remember the higher amount of nsocial security benefit payout.
You can receive later on the less you have to nwithdrawal down your other assets like your 401k your irs. Etc. And so you could npotentially pass those investments on to future generations. So think about it ndon t just think about yourself.
If you want to be charitable..
And at least think nabout charity. Think about your future family members of who you might want to npass that money onto to to benefit. The future generations you can t pass on nyour social security. But you can pass on your other assets.
But you can t pass nthem on if you ve depleted them all because you re receiving so little from nsocial security okay guys those were six strategies to nnot only reduce your taxes on your social security benefits. But reduce your noverall income taxes as a whole so doing a little planning up front on this stuff. Ncan. Go a long way into saving you hundreds to even thousands of dollars on nincome taxes.
So before you guys leave today let me know what strategy you nwould. Most likely consider for yourself of the six. We just discussed or if you nhave questions about anything we discussed in today s video feel free to nleave a question down below ask away guys. That s why i m here besides that i njust love reading your comments and talking to you over youtube.
It s one of nthe. Most rewarding parts of doing this channel alright guys. If you d like the nvideo today make sure you hit the like button. Before you leave share this ninformation with a friend especially somebody who s thinking about drawing nsocial security.
Soon or wants to minimize their taxes on their retirement nincome. As much as possible of a lot more video naround. This topic in the future of how to minimize your taxes in general on nyour investments. Etc.
So stay tuned for more. And if you have not already nsubscribed. The money in life tv well welcome to the channel bunny and life tv nis all about helping you become fiscally fit as we teach finances investing and ntaxes on a regular basis well guys that is all the information i have for you ntoday thank you so much for spending time with me here on youtube. I always nappreciate it i hope you have a great week.
No matter where you re at out there nin the country and until next time remember take this information and use nit to live your life on kage. I ll see you guys in the next week s video bye neverybody. ” ..
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