3 Costly Retirement Tax Traps (And Ways to Avoid Them)

The Retirement Show: Your Life, Your Money with Scott Sierens

Are you prepared for hidden tax traps in retirement? Many retirees assume their tax rates will go down, but for those with significant savings, unexpected tax burdens could cost them thousands of dollars each year.

Today, Scott Sierens, CFP®, uncovers three major retirement tax traps that could push you into a higher tax bracket, increase your Medicare premiums, and reduce your Social Security benefits. We’ll also address trending news about the potential elimination of taxes on Social Security benefits and answer a listener's question about the timing of claiming Social Security.

Here’s some of what we discuss in this episode:

⚠️ RMD Shock – How required minimum distributions can spike your taxes

💰 Medicare IRMAA Surcharges – Why higher income can increase your healthcare costs

📉 Social Security Taxation – How much of your benefits could be taxed?

0:00 – What’s coming up

2:10 – 1st Tax Trap

5:24 – 2nd Tax Trap

8:25 – Social Security in the news

12:34 – Listener question on SS claiming

Resources for this show:

https://money.usnews.com/money/retirement/articles/what-to-know-about-the-bill-to-repeal-social-security-taxes

https://budgetmodel.wharton.upenn.edu/issues/2025/2/10/eliminating-income-taxes-on-social-security-benefits

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Company website: https://sierensfinancialgroup.com/

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Unlocking Hidden Tax Savings Guide: https://maxretirementshow.com/taxes/

Social Security Benefits Guide: https://maxretirementshow.com/socialsecurity/

Will Your Money Last As Long As You Do Guide: https://sierensfinancialgroup.com/

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