Best video by putting the two tax rates side by side and explain how they work! Thank you for the clarity!

It's DOUBLE TAXATION - any way you look at it. It was after tax money when they took it - you already paid taxes on that. So when 'some' of it comes back you are taxed again.

It's DOUBLE TAXATION> We paid it in with after tax dollars. Then we get taxed on it when we get 'some' of it back - note; not all of it even.

To clarify, it's not people who are EVER age 60, 61, 62, or 63 in 2025, it's people who ATTAIN age 60, 61, 62, or 63 in 2025. What does that mean? If you are age 59 and turn age 60 in 2025, then you contribute up to the higher amount. If you are age 63 and turn age 64 in 2025, then you revert back to the lower $7,500 catch-up limit.

2025 Goals: For those receiving Social Security Retirement Benefits, adjust the earned income tax free limit from $23K/yr (single, not married) to $80k/yr to adjust for inflation since when that limit was lset. For those that are still contributing to Social Security, raise the taxable earned income limit from $168k/yr to $1M/yr to raise more revenue.

We are slave and thought we were free but just look at how the democrats have screw us year after year

Very good video. Thank you for the easy explanation. I have a question about if SS becomes non-taxable and doing a Roth conversion. Currently I have been calculating if I converted some of my 401k to Roth. Which is a sizable tax hit on my social security benefits. I haven't done it yet. I'm still thinking about it. Do you think that if the federal tax law changes and SS becomes non-taxable, that this could present an optimal opportunity to do some Roth converting? That's IF SS is no longer federally taxed and there's no 'new' rule on Roth converting.

Well thank Reagan for starting it. 🤦

Your videos and resources are great, thank you for sharing! I had a couple of quick questions about how to use the social security chart: 1. if social security is above $60,000 I assume you would just use the $60,000 column? 2. if social security is $45,000, would you use the $40,000 column or the $50,000 column? Thanks again!

Thanks for the info! Taking on the CFP in 2025 and your channel has some great simplified content for me to go over. Appreciate your time and effort!

Terrific explanations. I’ve been good at tax PREPARATION, but am just recently learning the value of tax PLANNING.

I worked under social security for 15 years and 20 under a non covered state pension. I know the WEP will reduce my social security significantly. If my husband were to die before me, do I have to take his social security? If I do the GPO would certainly eliminate any social security I would get under my work or his.

Very nice simplified explanation, and the graphics illustrated it perfectly. I have a friend with a regular taxable investment portfolio whose only other income source is Social Security. They currently have this portfolio "professionally" managed (1% fee), so they see a large number of taxable events each year, many of which are short term gains or unqualified dividends. This has pushed all their SS income into a taxable bracket, with disastrous results. I've been gently pushing them to switch to a self-managed portfolio with ETFs (such as VOO or IVV), so that we can control their income by what they sell, and tune it to avoid this tax torpedo as well as getting 0% taxation on gains. Can you comment on my strategy?

All❤ 👍👍👍👍👍👍👍👍

Suggestion for a topic. I've not retired yet but I'm hearing you must pay a %20 tax immediately upon withdrawing from pretax retirement accounts but if your ultimate tax liability will be 0 can you not pay that 20% tax up front?

Appreciate that you didn't talk about a million dollar + portfolio or $10K monthly retirement incomes. TOO MANY of these YT videos assume million dollar portfolios when the reality is most people entering retirement are lucky to have $500K in retirement savings. I know you all make your $$ on those people with lots of money but there's a majority out here that are/will retire with significantly less.

Best video!! Clear explanation thank you so much. Subscribe immediately

It was truly an emotional time for me when I got sudden $6m, I registered with a fiduciary ASAP, who helps me manage my portfolio. I diversified about $2.3m into a 6 funds portfolio, which is doing tremendous. now I have steady dividend income weekly depending on trade and its all Tax free. She is the best thing that happened to me as an investor. I honestly don't Let that little% bother me. 🌹✅

Excellent review

Excellent review thanks

Are you candidates me whatsoever you about that question always have been table article law fundamentals noncitizen development🆔 are you can't touch requirements me

Finally, someone clarifies this for me. Thank you so much!! Subscribed!

What about retirement pension not social security? We still pay taxes on

Even with the 60,000 additional income making them bring in over $100k there effective tax rate in the end was only a whopping 8.01%. smh Why people worry about this stuff is beyond my understanding. You are working your entire life paying up to 22-30% in taxes + FICA and others, then in retirement you no longer pay FICA at all and your tax drops dramatically, but that is when you are going to stress over the small taxes? Whatever. If you can get $100k a year in retirement, you can afford $8k in taxes. It doesn't matter how much of that is your social security.

At some point they have to take RMD’s and will probably have taxable income

It would have been nice to see you follow thru with a suggestion on how this hypothetical couple would actually withdraw the money. Examples help to round out the “academic” problem of how to take distributions. I do like that you showed the 1040 tax form.

Just discovered your videos Ted. Thank you. I especially like that you display the actual 1040 and schedules (the other video i viewed). I makes it so much easier to understand with real documents and numbers versus others that try to explain things on a white-board. Thanks so much!

I Live on my SSI $943.00 a Month , I Own a House and Car.

My SSI is $943.00 a Month :(

Thank you so much, the bar charts made it so clear. I just subscribed.

Lol!! What a joke. We truly are slaves.

What a great video! Thank you 🙏

Very good. Then if you try and figure the Medicare, state income taxes, etc. it can become very complicated. It took me about 5 years to optimize all this. It would be great if there was software that just did this.

Great video! Amazing teacher! Can you please do another example adding dividend income? Thank you!

I think not being able to make over 25000 for single before ss taxed is ridiculous in today's economy its already low income

This is the best video to explain tax planning, great job!

Good video. I was expecting you to mention something about bend points. For example, those who have less than 35 years of earnings and plan to work part-time would want to make sure their part-time work exceeds the first social security bend point (2024 = $1,174 monthly income), since 90% of it will be used in calculating their primary insurance amount (PIA). Earning more than $1,174 isn't as important since only 32% of those earnings (up to $6,721) will be used in calculating one's PIA. Maybe you already did a video on social security bend points and thus I just need to watch it :) Thanks!

Great video Ted! About 2 years ago, I started learning more about taxes and am very grateful to have done so. I had watched another video (can't recall the name of it) that provided information similar to what you showed. However, your video, as another person stated, was very clear and easy to understand. Thank you for taking time to create these videos and providing me and others a "free" education. Regarding taxes, I am amazed how many people (including myself at one time) don't pay attention to taxes and tax strategies. What I hear most people say regarding taxes is "I don't like to pay them", lol. However, these same people are typically the same people that don't know much, if anything, about taxes. For example, I remember my parents always "hoping" to get a tax refund, which at the time, I thought yeah who wouldn't. However, now I realize that if a person understand taxes, you don't have to "hope" for a refund. You can strategize and plan to either get a small refund or plan to pay a small amount when one file's their taxes. Education is so important and unfortunately many don't see or desire to educate themselves about taxes and very likely end up paying thousands or even hundreds of thousands more in taxes than necessary. Based on my projections, my knowledge now of taxes and tax strategies will likely reduce my overall taxes by a few hundred thousand dollars over the next few decades of my life (I am only 48 years old). As one person stated, "A lack of knowledge (in this case about taxes) can be very expensive. " :)

I always find your videos very informative and easy to understand. I have a question as it relates to Warren and Susie making a withdrawal from their pre-tax IRA. What if they paid the taxes on the withdrawal during the quarter in which they made the withdrawal or even at the same time they made the withdrawal. Then, at tax time they realize they could have made the withdrawal tax free as in one of your examples? Is there some way they can get that money back and/or what other options can they utilize? Roger

they are gonna fuck ya anyway they can

👉Check this out for more information on how Social Security benefits are taxed: kzbin.info/www/bejne/mZPMcqd7idOSiqMsi=jhjMSc8uXffCf4lx

This is awesome information. Thank you. Is there a timeline the standard deduction had to be drawn off the Ira or the taxable retirement account?

Great stuff, I like the visual component, makes it easy to follow. I wonder if Warren could convert it to a new Roth IRA or is it too late. Also, even if SS were taxed, it still may make sense to convert more IRA money over to the Roth. I imagine it depends on various assumptions and the optimization math on that would be even more complicated.

This is the best video that I have seen explaining the correlation between ordinary income/capital gains and how they influence each👍👍 Very nice and educational! Going to share it with my friends.😊

That's why I moved to south Carolina they don't take taxes out !!

No wonder my father produced provisional income in tax exemption municipal bonds. Over the 30yrs he collected retirement social security, his social security income became way below his comfortable means. I'm disabled over 10yrs and managed to not take from my little IRA. I already live far below the taxable income threshold. If I live to experience forced distribution age, I hope my distributions don't trigger a tax burden on me. That is a huge relief off of my worries. My property taxes are my one deduction weapon that I can use to fight the tax man to lower some of the tax bill. My city offers senior homeowners with income under $50k and 50% NY tax exemption for soul homeowners. Municipalities in NY must offer the low income soul homeowner NYS exemption on at the least county taxes. My County property taxes are quite hefty.

Now factor in IRMAA please.

What is the "sweet spot" in income to take based on say $5,000 in joint SS income per month? Basically, how much do you take out of an IRA to keep from paying ANY taxes? So, if I am understanding you correctly, $5,000 x 12 = $72,000 and 50% of that counts towards taxable income?