How IRA Withdrawals Impact Social Security Benefits

By Elsie Dudukovich0 Comments
 
Considerable planning and organizing goes into developing retirement savings.  The wide assortment of investing and savings vehicles, along with the staggering diversity of traditional and non-traditional asset options, allows anyone to create a truly personalized financial strategy for providing for their golden years.  Educational resources abound in our digital age, with plenty of online resources and digital apps available to help you on your way – or put you in contact with a financial professional to provide guidance.      

How much thought and planning are you putting into spending and using money in retirement?

Forbes contributor, Laurence Kotlikoff discusses an important question: Do IRA withdrawals affect my Social Security benefits? The answer isn’t simple, the article says, continuing that it can be answered simply with “It’s possible.” The tax environment of your retirement account is a primary factor in how withdrawals will be treated when it comes to taxable income, and whether or not Social Security benefit taxation will be triggered.  If you have more than one IRA, such as a Traditional IRA and a Roth IRA, timing your withdrawals requires as much planning and care as growing your savings.