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How To Reduce Social Security Taxes In Retirement

By May 5, 2021No Comments

Combining taxable IRA and retirement plan income with Social Security income in the same year causes retirees’ effective tax rates to soar. The effect can be reduced or avoided by taking IRA or other retirement plan distributions first and claiming Social Security later. IRA Conversions allow retirees to replace the retirement income they would have drawn from Social Security with penalty-free withdrawals from Fixed Indexed Annuities buying them additional years.