Living in the Parallel Economy
How businesses and families can join forces to survive the current economic downturn. New and creative ways to oppose the political environment in health care.
Social Security: This Tax Surprise Could Shake Up Your Retirement How to get out of taxes on your benefits It's hard to avoid Uncle Sam, but there is a loophole that can help you get out of federal taxes on your benefits: invest in a Roth retirement account. Withdrawals from a Roth IRA or Roth 401(k) don't count toward your provisional income. If the majority of your savings are in this type of account, you could reduce your provisional income enough to lower or even eliminate federal taxes on your benefits. So, for example, if you were to withdraw $30,000 per year from a 401(k) while collecting $20,000 per year from Social Security, your provisional income would be $40,000 per year, and you'd owe taxes on up to 85% of your benefit amount. But say you were to withdraw that money from a Roth IRA instead, all other factors remaining the same. Your provisional income would be just $10,000 per year, and you wouldn't be subject to federal taxes at all. Taxes can be compl
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