Financial Focus Don't be surprised by Social Security taxes When you reach the appropriate age, they don't mean you'll lose 50%, or 85%, withdrawals from a traditional IRA are its easy to apply for Social Security retire- of your benefits they are just the percen taxable and will increase your adjusted ment benefits just go to Social Securitys tages of benefits you may be taxed on at website and fill out the online form. But there's another part of the ap plication process that a surprising number of people ignore- the part that asks how much money, if any, you want withheld for federal taxes. And if you skip or 22% of your monthly benefit withheld. Social Security benefits. And withdrawals this section, you could face an unpleasant Your tax advisor can help you choose the surprise when it's tax-filing time. Here are the details: If you're a single filer .. If your com bined annual income is between $25,000 pay will also depend on when you start and $34,000, you may have to pay income taking Social Security. The earlier you take fects, you can more effectively incor porate tax on up to 50% of your Social Security benefits. ("Combined" income includes your adjusted gross income, non-taxable interest and one-half of your annual Social when you need to begin collecting your Security benefits.) If your combined in come is more than $34,000, up to 85% of other factors, such as your anticipated life This article was written by Edward Jones for your benefits may be taxable. If you're married and file jointly... your spending needs and your spouse's If you and your spouse have a combined an nual income between $32,000 and $44,000, you may be taxed on up to 50% Because Social Security taxes are based on of your benefits. If your combined income your overall income, the amount of mon- Edward Jones, its employees, and financial ad- is more than $44,000, up to 85% of your ey you withdraw during retirement, and benefits may be taxable. These numbers might seem high, but affect your tax situation. For example, gross income, but withdrawals from a Roth IRA will be tax-free, provided you've had your account at least five years and you're under payment penalty, you can file Form older than 592, so this money won't enter W-4V with the Social Security Administra- into your taxable income calculations and it won't increase the tax you owe on your your personal income tax rate. To help avoid a big tax bill or an tion and request to have 7%, 10%, 12% from health savings accounts (HSAS) used withholding percentage that's appropriate for qualified health expenses also won't for your situation. The amount of tax you may need to count toward your taxable income. By knowing exactly what to expect from Social Security, including the tax ef- benefits, the smaller your monthly checks, your benefits into your overall retirement income planning- and the better your and the smaller the taxes. But taxes may not be a key issue for you in deciding plans, the more you'll be able to enjoy payments. You may place more weight on your life as a retiree. expectancy, your employment situation, use by your local Edward Jones Financial Advisor. income and Social Security situation. Here's something else to keep in mind: Edward Jones, Member SIPC visors cannot provide tax or legal advice. You should consult your attorney or quali fied tax advisor regarding your situation. where that money comes from, can also Edward Jones Sean P. Asiala AAMS Edward Jones Michael C. Caley AAMS" Edward Jones Pam Covington CFP AAMS Edward Jones Tod Heisler AAMS Edward Jones Jason Korner CFP Edward Jones Quinn Nofziger Edward Jones Gwen Ruppert AAMS Edward Jones Karen Rupert AAMS Financial Advisor Financial Advisor 7127 Homestead Rd. Suite C Fort Wayne, N 46814 karen ruperttedwardores.com 263-4760 Making Sense of Investing Financial Advisor 14413 lieoin Rd Ste E Fort Wayne, IN 46814 Financial Advisor Financial Advisor Financial Advisor 7030 Pointe nvemess Way Suito 125 Fort Winyne, IN 404 432-3613 Making Sense of Investing Financial Advisor Financial Advisor 01 Chestnut Hils Parkway fort Wayne, iIN 40814 6525 Constitution Dr Fort Wayne, IN 404 7329 West Jetterson Bivd Fort Wayne, ItN 4604 7525 West Jetferson Bivd. 414 S. Scott Rd Fort Winyne, IN 46a04 Fort Wayne, N 40814 625-5700 Making Sense of Investing 432-0304 Making Sense of Investing 478-8038 Making Sense of lnvesting 444-3134 Making Sense of Investing 399-5853 Making Sense of Investing 625-3524 Making Sense of investing Financial Focus Don't be surprised by Social Security taxes When you reach the appropriate age, they don't mean you'll lose 50%, or 85%, withdrawals from a traditional IRA are its easy to apply for Social Security retire- of your benefits they are just the percen taxable and will increase your adjusted ment benefits just go to Social Securitys tages of benefits you may be taxed on at website and fill out the online form. But there's another part of the ap plication process that a surprising number of people ignore- the part that asks how much money, if any, you want withheld for federal taxes. And if you skip or 22% of your monthly benefit withheld. Social Security benefits. And withdrawals this section, you could face an unpleasant Your tax advisor can help you choose the surprise when it's tax-filing time. Here are the details: If you're a single filer .. If your com bined annual income is between $25,000 pay will also depend on when you start and $34,000, you may have to pay income taking Social Security. The earlier you take fects, you can more effectively incor porate tax on up to 50% of your Social Security benefits. ("Combined" income includes your adjusted gross income, non-taxable interest and one-half of your annual Social when you need to begin collecting your Security benefits.) If your combined in come is more than $34,000, up to 85% of other factors, such as your anticipated life This article was written by Edward Jones for your benefits may be taxable. If you're married and file jointly... your spending needs and your spouse's If you and your spouse have a combined an nual income between $32,000 and $44,000, you may be taxed on up to 50% Because Social Security taxes are based on of your benefits. If your combined income your overall income, the amount of mon- Edward Jones, its employees, and financial ad- is more than $44,000, up to 85% of your ey you withdraw during retirement, and benefits may be taxable. These numbers might seem high, but affect your tax situation. For example, gross income, but withdrawals from a Roth IRA will be tax-free, provided you've had your account at least five years and you're under payment penalty, you can file Form older than 592, so this money won't enter W-4V with the Social Security Administra- into your taxable income calculations and it won't increase the tax you owe on your your personal income tax rate. To help avoid a big tax bill or an tion and request to have 7%, 10%, 12% from health savings accounts (HSAS) used withholding percentage that's appropriate for qualified health expenses also won't for your situation. The amount of tax you may need to count toward your taxable income. By knowing exactly what to expect from Social Security, including the tax ef- benefits, the smaller your monthly checks, your benefits into your overall retirement income planning- and the better your and the smaller the taxes. But taxes may not be a key issue for you in deciding plans, the more you'll be able to enjoy payments. You may place more weight on your life as a retiree. expectancy, your employment situation, use by your local Edward Jones Financial Advisor. income and Social Security situation. Here's something else to keep in mind: Edward Jones, Member SIPC visors cannot provide tax or legal advice. You should consult your attorney or quali fied tax advisor regarding your situation. where that money comes from, can also Edward Jones Sean P. Asiala AAMS Edward Jones Michael C. Caley AAMS" Edward Jones Pam Covington CFP AAMS Edward Jones Tod Heisler AAMS Edward Jones Jason Korner CFP Edward Jones Quinn Nofziger Edward Jones Gwen Ruppert AAMS Edward Jones Karen Rupert AAMS Financial Advisor Financial Advisor 7127 Homestead Rd. Suite C Fort Wayne, N 46814 karen ruperttedwardores.com 263-4760 Making Sense of Investing Financial Advisor 14413 lieoin Rd Ste E Fort Wayne, IN 46814 Financial Advisor Financial Advisor Financial Advisor 7030 Pointe nvemess Way Suito 125 Fort Winyne, IN 404 432-3613 Making Sense of Investing Financial Advisor Financial Advisor 01 Chestnut Hils Parkway fort Wayne, iIN 40814 6525 Constitution Dr Fort Wayne, IN 404 7329 West Jetterson Bivd Fort Wayne, ItN 4604 7525 West Jetferson Bivd. 414 S. Scott Rd Fort Winyne, IN 46a04 Fort Wayne, N 40814 625-5700 Making Sense of Investing 432-0304 Making Sense of Investing 478-8038 Making Sense of lnvesting 444-3134 Making Sense of Investing 399-5853 Making Sense of Investing 625-3524 Making Sense of investing