4 Ways to Collect Social Security Completely Tax-free in Retirement

(be sure to checkout the video of this analysis too)

If you are able to collect social security completely tax-free in retirement, it’s been proven that your retirement income will last 5–7 years longer on average.

So not only are you limiting your tax bill, but you’re also maximizing your income in retirement.

Social security is only taxed based on what’s called “provisional income”, which is simply any “taxable” money coming out of retirement accounts (401ks, IRAs, pensions, PERA, etc) or otherwise… plus 1/2 of your social security check.

So the way to collect social security tax free is to keep your provisional income low.

You can do this in a couple of ways:

✅ Delay your social security

Not only are you maximizing the income value of social security by delaying, but you’re minimizing taxes as well.

Delaying social security allows you to fully leverage your standard deduction to take more TAXABLE money out tax-free.

✅ Strategically position money in Roth IRAs & Cash Value Life Insurance

None of the money coming out of these accounts is taxable NOR does it count as provisional income…

So you can take an unlimited amount of income from Roth IRAs and life insurance contracts and still achieve a tax free retirement.

✅ Leverage Non-qualified annuities for some of your Guaranteed Income (in some cases)

By using non-qualified annuities for some of your guaranteed income you have the majority of the income coming out tax-free.

That’s because most of the non-qualified income is treated as a return of principal and therefore not taxable.

✅ Manage Your RMDs

Ensure that you manage your taxable retirement accounts properly, choosing your tax bracket rather than being forced, so that you don’t end up in a situation where your RMDs become so high that they prevent you from collecting social security tax-free (by forcing your provisional income beyond the social security thresholds).

If you do all of these properly, you can ensure that you won’t pay a dollar of taxes on your social security.

Let’s chat 💬😎