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Listen "Listener Q&A: Social Security, RMDs & Annuities"
Episode Synopsis
Check out Jeremy’s latest podcast on retirement planning by listening on “Apple Podcasts” or “Spotify Podcasts” or read below for my answers to Your Questions About Social Security, RMDs & Annuities.
Summary:
[174] – We’ve recently received a bunch of questions from our listeners and today Jeremy answers the first batch!
In this episode, Jeremy Keil answers your questions about Social Security, required minimum distributions, and annuities. He talks about how income levels affect social security taxes and the importance of tax planning. Jeremy explains the calculation of RMDs, the benefits of qualified charitable distributions, and Roth conversions. He also compares multiyear guarantee annuities to CDs, highlighting the potential for higher interest rates and the need to understand the role of guaranteed income in retirement.
Jeremy discusses:
Social Security taxation and its complexities
How required minimum distributions (RMDs) work and the challenges in managing them
Qualified charitable distributions (QCDs) and potential benefits of Roth conversions
Considerations for evaluating annuities as part of retirement planning
Maximizing Social Security benefits
And more
Answering Your Questions About Social Security, RMDs & Annuities
Social Security is a vital component of retirement income for many individuals, but understanding how it is taxed can be a confusing process. In this blog post, we will delve into the intricacies of Social Security taxation, explore the thresholds that determine tax rates, and shed light on the complexities of Required Minimum Distributions (RMDs).
How is Social Security Taxed?
Social Security taxation is not a one-size-fits-all scenario. The taxation of Social Security benefits depends on your combined income, a term that takes into account all sources of income, including half of your Social Security benefits.
Zero Taxed: If your combined income falls below a certain threshold, your Social Security benefits remain untaxed.
50% Taxable: Once your combined income surpasses another benchmark, 50% of your Social Security benefits may become taxable.
85% Taxable: If your combined income exceeds a higher threshold, up to 85% of your Social Security benefits may be subject to taxation.
For married couples filing jointly, these thresholds are important. The transition points from 0% to 50% taxation and from 50% to 85% taxation occur at combined incomes of $32,000 and $44,000, respectively.
How much can I earn while on Social Security?
To determine the taxable portion of your Social Security benefits, you need to calculate your combined income. This involves adding up all non-Social Security income and half of your Social Security income. An example can illustrate this better:
Suppose you have $30,000 from a pension and $20,000 from Social Security. Combining these, along with half of your Social Security income ($10,000), brings your combined income to $40,000.
With a threshold of $32,000 for 50% taxation, the excess $8,000 results in $4,000 of Social Security becoming taxable.
How do RMDs work?
The complexities of Social Security taxation become even more apparent when you introduce RMDs. RMDs are mandatory withdrawals from retirement accounts that can impact the taxation of your Social Security benefits.
If you add a $20,000 RMD to the previous example, your combined income now becomes $60,000.
This exceeds the $44,000 threshold for 85% taxation.
Despite the formula suggesting $19,600 in taxable Social Security, the maximum taxable amount is capped at 85%, resulting in a total of $17,000.
Understanding Social Security taxation and the interaction with RMDs is crucial for retirees. The complex calculations involved require careful consideration. As regulations and age requirements change, staying informed about these aspects is essential for effective retirement planning. Seeking advice from financial professionals can help navigate this intricate landscape and optimize your retirement income strategy.
___________________________________________________________________________
To learn more about Social Security, RMDs & Annuities, check out the resources below!
If you have any questions, feel free to contact us using the contact information provided below!
Resources:
SSA.gov: Income Taxes and Your Social Security Benefit
IRS.gov: Retirement Topics – Required Minimum Distributions (RMDs)
IRAHelp.com: 2022 Uniform Lifetime Table
Free Retirement Planning Video Course: 5stepretirementplan.com
3 Things You Should Know Before Choosing A Financial Advisor
7 Questions That Could Make or Break Your Retirement
Subscribe to Retirement Revealed on Google Podcasts
Subscribe to Retirement Revealed on Apple Podcasts
Connect With Jeremy Keil:
Keil Financial Partners
LinkedIn: Jeremy Keil
Facebook: Jeremy Keil
LinkedIn: Keil Financial Partners
YouTube: Retirement Revealed
Book an Intro Call with Jeremy’s Team
===
Disclosures
Videos/Podcasts/Blogs (media) published prior to June 30, 2025, were recorded and approved while the advisor was affiliated with Thrivent Advisor Network. These media reflect the advisor’s views and interpretations at that time. The information and disclosures contained in those media were believed to be accurate and complete as of the date of recording, but may not reflect current market conditions or Alongside, LLC, policies.
All content is provided for educational purposes only and does not constitute personalized investment advice. Read below for current disclosures and potential conflicts of interest.
This media is provided for informational and educational purposes only and does not consider the investment objectives, financial situation, or particular needs of any consumer. Nothing in this program should be construed as investment, legal, or tax advice, nor as a recommendation to buy, sell, or hold any security or to adopt any investment strategy.
The views and opinions expressed are those of the host and any guest, current as of the date of recording, and may change without notice as market, political or economic conditions evolve. All investments involve risk, including the possible loss of principal. Past Performance is no guarantee of future results.
Legal & Tax Disclosure
Consumers should consult their own qualified attorney, CPA, or other professional advisor regarding their specific legal and tax situations.
Advisor Disclosures
Alongside, LLC, doing business as Keil Financial Partners, is an SEC-registered investment adviser. Registration does not imply a certain level of skill or expertise. Advisory services are delivered through the Alongside, LLC platform. Keil Financial Partners is independent, not owned or operated by Alongside, LLC.
Additional information about Alongside, LLC – including its services, fees and any material conflicts of interest – can be found at https://adviserinfo.sec.gov/firm/summary/333587 or by requesting Form ADV Part 2A.
The content of this media should not be reproduced or redistributed without the firm’s written consent. Any trademarks or service marks mentioned belong to their respective owners and are used for identification purposes only.
For important disclosures visit: https://keilfp.com/disclosures/
===
Summary:
[174] – We’ve recently received a bunch of questions from our listeners and today Jeremy answers the first batch!
In this episode, Jeremy Keil answers your questions about Social Security, required minimum distributions, and annuities. He talks about how income levels affect social security taxes and the importance of tax planning. Jeremy explains the calculation of RMDs, the benefits of qualified charitable distributions, and Roth conversions. He also compares multiyear guarantee annuities to CDs, highlighting the potential for higher interest rates and the need to understand the role of guaranteed income in retirement.
Jeremy discusses:
Social Security taxation and its complexities
How required minimum distributions (RMDs) work and the challenges in managing them
Qualified charitable distributions (QCDs) and potential benefits of Roth conversions
Considerations for evaluating annuities as part of retirement planning
Maximizing Social Security benefits
And more
Answering Your Questions About Social Security, RMDs & Annuities
Social Security is a vital component of retirement income for many individuals, but understanding how it is taxed can be a confusing process. In this blog post, we will delve into the intricacies of Social Security taxation, explore the thresholds that determine tax rates, and shed light on the complexities of Required Minimum Distributions (RMDs).
How is Social Security Taxed?
Social Security taxation is not a one-size-fits-all scenario. The taxation of Social Security benefits depends on your combined income, a term that takes into account all sources of income, including half of your Social Security benefits.
Zero Taxed: If your combined income falls below a certain threshold, your Social Security benefits remain untaxed.
50% Taxable: Once your combined income surpasses another benchmark, 50% of your Social Security benefits may become taxable.
85% Taxable: If your combined income exceeds a higher threshold, up to 85% of your Social Security benefits may be subject to taxation.
For married couples filing jointly, these thresholds are important. The transition points from 0% to 50% taxation and from 50% to 85% taxation occur at combined incomes of $32,000 and $44,000, respectively.
How much can I earn while on Social Security?
To determine the taxable portion of your Social Security benefits, you need to calculate your combined income. This involves adding up all non-Social Security income and half of your Social Security income. An example can illustrate this better:
Suppose you have $30,000 from a pension and $20,000 from Social Security. Combining these, along with half of your Social Security income ($10,000), brings your combined income to $40,000.
With a threshold of $32,000 for 50% taxation, the excess $8,000 results in $4,000 of Social Security becoming taxable.
How do RMDs work?
The complexities of Social Security taxation become even more apparent when you introduce RMDs. RMDs are mandatory withdrawals from retirement accounts that can impact the taxation of your Social Security benefits.
If you add a $20,000 RMD to the previous example, your combined income now becomes $60,000.
This exceeds the $44,000 threshold for 85% taxation.
Despite the formula suggesting $19,600 in taxable Social Security, the maximum taxable amount is capped at 85%, resulting in a total of $17,000.
Understanding Social Security taxation and the interaction with RMDs is crucial for retirees. The complex calculations involved require careful consideration. As regulations and age requirements change, staying informed about these aspects is essential for effective retirement planning. Seeking advice from financial professionals can help navigate this intricate landscape and optimize your retirement income strategy.
___________________________________________________________________________
To learn more about Social Security, RMDs & Annuities, check out the resources below!
If you have any questions, feel free to contact us using the contact information provided below!
Resources:
SSA.gov: Income Taxes and Your Social Security Benefit
IRS.gov: Retirement Topics – Required Minimum Distributions (RMDs)
IRAHelp.com: 2022 Uniform Lifetime Table
Free Retirement Planning Video Course: 5stepretirementplan.com
3 Things You Should Know Before Choosing A Financial Advisor
7 Questions That Could Make or Break Your Retirement
Subscribe to Retirement Revealed on Google Podcasts
Subscribe to Retirement Revealed on Apple Podcasts
Connect With Jeremy Keil:
Keil Financial Partners
LinkedIn: Jeremy Keil
Facebook: Jeremy Keil
LinkedIn: Keil Financial Partners
YouTube: Retirement Revealed
Book an Intro Call with Jeremy’s Team
===
Disclosures
Videos/Podcasts/Blogs (media) published prior to June 30, 2025, were recorded and approved while the advisor was affiliated with Thrivent Advisor Network. These media reflect the advisor’s views and interpretations at that time. The information and disclosures contained in those media were believed to be accurate and complete as of the date of recording, but may not reflect current market conditions or Alongside, LLC, policies.
All content is provided for educational purposes only and does not constitute personalized investment advice. Read below for current disclosures and potential conflicts of interest.
This media is provided for informational and educational purposes only and does not consider the investment objectives, financial situation, or particular needs of any consumer. Nothing in this program should be construed as investment, legal, or tax advice, nor as a recommendation to buy, sell, or hold any security or to adopt any investment strategy.
The views and opinions expressed are those of the host and any guest, current as of the date of recording, and may change without notice as market, political or economic conditions evolve. All investments involve risk, including the possible loss of principal. Past Performance is no guarantee of future results.
Legal & Tax Disclosure
Consumers should consult their own qualified attorney, CPA, or other professional advisor regarding their specific legal and tax situations.
Advisor Disclosures
Alongside, LLC, doing business as Keil Financial Partners, is an SEC-registered investment adviser. Registration does not imply a certain level of skill or expertise. Advisory services are delivered through the Alongside, LLC platform. Keil Financial Partners is independent, not owned or operated by Alongside, LLC.
Additional information about Alongside, LLC – including its services, fees and any material conflicts of interest – can be found at https://adviserinfo.sec.gov/firm/summary/333587 or by requesting Form ADV Part 2A.
The content of this media should not be reproduced or redistributed without the firm’s written consent. Any trademarks or service marks mentioned belong to their respective owners and are used for identification purposes only.
For important disclosures visit: https://keilfp.com/disclosures/
===
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