Paying Taxes on your Social Security?
Did you know?
As much as 85% of Social Security benefits could be subject to income tax. According to the Revenue Reconciliation Act of 1993, if your earnings are above certain limits, your Social Security benefits may be taxed at a higher rate.
What Can You Do?
By putting some of your assets into tax-deferred retirement plans and leaving the interest to compound tax-deferred, you can control your taxable income to minimize Social Security taxation. It's a tax strategy that doesn't neccessarly require you to take less income, but instead regulate the amount of taxes you pay and when you pay them.
- Multiple liquidity options
- Possible avoidance of probate
- Competitive Interest Rates
- No risk to premium due to index volatility
Would additional tax-deferred benefits interest you?
Tax planning is a big part of insuring your retirement will last a lifetime. Consider your options and take advantage of other tax-deferred opportunities that are made available to you by Amerity Financial.
Social Security Income chart
The chart below
outlines the filing status, income levels, and percentage of Social Security benefits subject to tax.
How much of your income is ultimately subject to taxes depends on how much provisional income you have. Provisional income includes not only normal earned income, such as interest from CDs or mutual funds, but also one-half of Social Security benefits received. It even includes tax-exempt income such as interest from tax-free municipal bonds!
With Tax-Deferred Retirement Plans You can...
Benefit from the effect of triple compounding. You will earn interest on your premium, interest on your interest and interest on money that would have otherwise been paid in taxes!
Reduce your tax liability on your hard-earned retirement income! Taxes do not need to be paid until money is withdrawn.
Note: This information is not intended to be a detailed description of the effect of taxes on Social Security benefits. Please consult with your tax advisor to determine the actual impact on your specific situation.