Retirees with high 401(k)s face higher taxes on Social Security benefits
Updated
Updated · GOBankingRates · May 4
Retirees with high 401(k)s face higher taxes on Social Security benefits
10 articles · Updated · GOBankingRates · May 4
An analysis cited by GOBankingRates says balances above $800,000 can, after age-75 required minimum distributions, make up to 85% of benefits taxable.
Advisers David Beren and Evan Mills say Roth conversions before RMDs begin can reduce future taxable income and lessen the hit to Social Security.
During RMD years, qualified charitable distributions and holding lower-growth assets in pretax accounts may also help manage taxes on retirement income.
How can strategic charitable giving actually lower the tax bill on your retirement income?
Can converting to a Roth before RMDs begin shield your Social Security from higher taxes?
Is your large 401(k) triggering a surprise tax on your Social Security benefits?