Personal Investments • Delay taking social security past 70

The scenario that has my attention would be if I stopped working at 70 for income. I then did 3 years of ROTH conversions up to age 73 and forgo social security until 73. This would drop my total income to a 22% bracket even with SS. So much of this analysis is about sequence of returns and taxable and tax deferred after RMD are required.

You would still be better off taking SS at 70. If you do the same Roth conversions so that your non-SS income goes to the top of the 22% bracket, your taxable income will be increased by 85% of the SS, and that amount will be taxed at 24%. You will lose 20.4% of the SS to taxes and have 79.6% of the SS still to spend or invest, which is better than not having any of it.

Statistics: Posted by grabiner — Tue Jun 04, 2024 9:01 pm — Replies 21 — Views 1707

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