Social Security still makes up a large chunk of the retirement income pie (about 35% for the average American). It may come as a surprise to some that up to 85% of a person’s benefit could indeed be added to your taxable income. In fact, about 40% of Americans pay taxes on their Social Security benefit. So how do you determine if your Social Security payments are taxable?...
Save Early, Save Often
Last week the Consumer Federation of America and the American Savings Education Council sponsored America Saves Week in an effort to raise awareness and get more Americans to do whatever they can to save. In conjunction, the following annual survey was released, highlighting the differences in saving between the genders....
Social Security – Changes to File-and-Suspend and Restricted Applications Clarified
The Social Security Administration issued an emergency message late Friday to its field offices explaining how to implement changes that will ban future retirees from claiming only spousal benefits at full retirement age. Also of note, the Administration clarified that the official deadline to submit a request to file and suspend benefits (one of the strategies affected by the changes) and be grandfathered into the old rules is April 29, one day earlier than previously reported....
Tax Breaks for the Newly Retired
Because federal tax law reaches deep into all aspects of our lives, it’s no surprise that the rules that affect us change as our lives change. This can present opportunities to save or create costly pitfalls to avoid. Being alert to the rolling changes that come at various life stages is the key to holding down your tax bill to the legal minimum. Check out these issues that face the newly retired.