Today we’re diving into a topic that affects many retirees, working while retired and how it impacts your income.
Retirement doesn’t always mean the end of your working days.
Many choose to keep working, but how does this affect your income?
Let’s break it down.
If you’re under full retirement age, FRA, and still working, your Social Security benefits might be reduced.
In 2024, earning over $21,240 means $1.00 deducted for every $2.00 earned above that limit.
Once you reach your FRA, you can earn any amount without affecting your Social Security benefits.
Some pension plans may limit earning additional income while receiving benefits.
Check your specific plans terms withdrawing from retirement accounts like 401K.
S or IRAs while working can have tax implications.
Plan your withdrawals carefully to avoid unnecessary taxes.
Extra income from working can push you into a higher tax bracket and affect the taxation of your Social Security or pension income.
Retirement income can be complex.
Consult with a financial advisor to understand your situation and make the best financial decisions.
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