As referenced above this heat map is informative.
https://www.bogleheads.org/w/images/6/6 ... FJ2023.png
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Social security is taxed differently during retirement. It isn’t taxed after other income, it is taxed concurrently with other income in a range. For $30k social security the social security is taxed at other income (your pension ) range of $28k to $50k. At that point it is fully taxed. Above about $52k in other income (which roughly equals your pension income) you are in the 12% marginal rate up to over $100k of other income, which could be traditional IRA distributions. It is kind of a moving target as the social security tax ability thresholds do not adjust for inflation, plus tax laws change.
But given that I think it makes sense to have some traditional to fill up lower brackets, if the opportunity exists, which can be hard to predict.
https://www.bogleheads.org/w/images/6/6 ... FJ2023.png
Social security is taxed differently during retirement. It isn’t taxed after other income, it is taxed concurrently with other income in a range. For $30k social security the social security is taxed at other income (your pension ) range of $28k to $50k. At that point it is fully taxed. Above about $52k in other income (which roughly equals your pension income) you are in the 12% marginal rate up to over $100k of other income, which could be traditional IRA distributions. It is kind of a moving target as the social security tax ability thresholds do not adjust for inflation, plus tax laws change.
But given that I think it makes sense to have some traditional to fill up lower brackets, if the opportunity exists, which can be hard to predict.
Statistics: Posted by JBTX — Mon Sep 30, 2024 8:59 pm — Replies 7 — Views 312