Ask Terry Questions Accurate income tax estimate when receiving pensions and then a SocSec pension.

Accurate income tax estimate when receiving pensions and then a SocSec pension.

By Terry Savage on July 07, 2024 | Financial Planning / Retirement

I live and worked in Illinois. I worked for two employers (and had SocSec taxes taken out of wages for both). Last year, I retired at 65 and began receiving both pensions. At full SocSec retirement (66 and 8 months), I intend to apply and receive SocSec pension.
Would there be either/both Fed and State taxes on my SocSec pension benefits?

Terry Says

This is the perfect time to do some real financial planning around retirement income.  If you have a smart advisor, you may find it worthwhile to wait until age 70 to collect SS, since you have other pension income.  Your base check will increase by 8% a year for every year you wait — and that’s the base upon which future cost of living adjustments will be made.

To find a Fee-ONLY — FIDUCIARY — planner use this link:  Pam Krueger Wealthramp – Terry Savage

Even one meeting might save you a lifetime small fortune.   But if you just want to know the taxes that might apply to your annual income  if you stick with your original plan, consult a CPA — and then arrange to have perhaps 20% withheld from your SS deposit for taxes.

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