While most people know that payroll taxes fund Social Security, fewer understand how Social Security benefits are taxed in retirement or how the Social Security Tax Torpedo can impact their retirement income.
In my first video post on the company blog, I explain how Social Security tax thresholds haven’t been adjusted for inflation, resulting in more recipients paying taxes on their benefits than when these policies were first introduced in the early 1980s.
I also discuss the common retirement pitfall, the Social Security Tax Torpedo, which can significantly increase the federal tax burden for retirees.
- Colby