Monday, November 4, 2013

How Could 401(k) Income be Toxic for Social Security Recipients?

One of the most shocking things that many retirees discover - after the fact - is how their other sources of income directly affect the taxes they must pay on their Social Security checks. While most of us are aware that we must pay income tax on tax-deferred assets (like 401(k)s, and 403(b)s), many are under the erroneous impression that that's where things end.

Here is how things REALLY work under the U.S. Tax Code and how you can legally keep more of your hard-earned money:

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