Social Security claiming decisions aren’t as simple as they may appear. The decisions you make for yourself can impact your spouse, your future taxes, and even the bite Medicare premiums take from your Social Security benefits.
The SECURE Act includes roughly 100 new rules for retirement affecting both individuals and businesses – all with tax implications and various effective dates. These are the most expansive changes to retirement rules in 40 years.
Many people believe they should take Social Security early in order to keep from drawing down IRA assets, believing that the longer they can grow the IRA tax-deferred, the better off they’ll be.
Are they wrong? Maybe. Maybe not. Different people are in different circumstances.
At retirement, some people receive a check from their employer for their 401(k) balance and write a check for deposit into their IRA before the 60-day deadline, just like they were told, to avoid any problems with the IRS. They’ve met the deadline. The money is now in their IRA. They’re clear and the rollover is complete…. or is it?
Too many seniors still take the Social Security claiming decision too lightly – it’s a mistake that can cost them tens, if not hundreds, of thousands of dollars of retirement income during their lifetimes. And, often, the decision is made based on false bias or assumptions rather than a solid planning strategy.