One needs to plan now to reduce or eliminate the taxes they pay next year
South Jordan, UT -- (SBWIRE) -- 05/05/2014 -- Approximately 40 percent pay taxes on social security benefits, according to statistics maintained by the social security administration, yet many wonder is social security taxable and whether there are certain things one should be doing to reduce their tax burden. Although 2013 tax returns have now been filed, individuals find they can begin planning ahead to reduce or eliminate one's taxes in future years.
"Don't delay as every American deserves to keep their hard earned money. Making use of the social security tax calculator found at Social Security Tax Strategy or requesting a free calculation with the help of this tool allows one to increase their net spendable income by reducing or eliminating unnecessary taxes," Jason of Social Security Tax Strategy declares.
Many opt to make use of a non-qualified split annuity, utilizing a single premium immediate annuity for current income needs and a fixed deferred annuity for future ones. The immediate annuity remains a return of one's individual investment and therefore isn't taxed by the government. With the deferred annuity, one achieves tax-deferred growth at interest rates typically higher than those seen with average CD rates.
"Retirees find these are just two of the many benefits one obtains when choosing a non-qualified split annuity, and this is one of many options Social Security Tax Strategy offers to those who choose to work with them," Jason explains.
Others opt to convert their traditional IRA to a Roth IRA as the income from the Roth IRA won't be taxed, yet some find a modified endowment contract remains a better option, allowing them to save for unexpected expenses that arise during an emergency while still giving them an opportunity to increase the amount they have to pass on to beneficiaries.
"There are advantages and disadvantages to each option currently available, and Social Security Tax Strategy looks to find the best option for each client's situation. With the help of either the free calculation offered through the website or the tax calculator one may use to make their own financial decisions, everyone now finds they can increase their net spendable income by making some simple changes to their tax strategies," Jason proclaims.
About Social Security Tax Strategy
Retirement involves a whole new way of living, one in which many retirees find they must stretch every penny while redefining their senior years and what they expect during this time. Social Security Tax Strategy strives to help people get the most from their retirement income sources and focuses on strategies many fail to recognize or take advantage of, ones which help to increase the retiree's net spendable income. Each senior comes with their own individual needs which is why Social Security Tax Strategy reviews each case to decide which strategies best meet the needs of the client and his or her goals.