[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.amorusolaw.com\/blog\/how-to-benefit-from-a-roth-ira-and-social-security-new-york-ny-white-plains-ny\/#BlogPosting","mainEntityOfPage":"https:\/\/www.amorusolaw.com\/blog\/how-to-benefit-from-a-roth-ira-and-social-security-new-york-ny-white-plains-ny\/","headline":"How to Benefit from a Roth IRA and Social Security","name":"How to Benefit from a Roth IRA and Social Security","description":"\u201cAlthough Social Security helps millions of seniors stay afloat financially, living on those benefits alone could mean winding up cash-strapped in retirement.\u201d When originally created, Social Security was designed to prevent the elderly and infirm from sinking into dire poverty. When most working Americans enjoyed a pension from their employer, Social Security was an additional […]","datePublished":"2020-11-04","dateModified":"2024-08-07","author":{"@type":"Person","@id":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/#Person","name":"Amoruso & Amoruso, LLP","url":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/","identifier":5,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Amoruso & Amoruso, LLP","logo":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","width":0,"height":0}},"image":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0263e97324f8.jpg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0263e97324f8.jpg","height":600,"width":900},"url":"https:\/\/www.amorusolaw.com\/blog\/how-to-benefit-from-a-roth-ira-and-social-security-new-york-ny-white-plains-ny\/","about":["Elder Law","Required Minimum Distributions \/ RMDs","Roth IRA \/ Roth Conversions","Social Security"],"wordCount":471,"keywords":["Elder Law","Required Minimum Distributions","RMDs","Roth IRA","Social Security"],"articleBody":"\u201cAlthough Social Security helps millions of seniors stay afloat financially, living on those benefits alone could mean winding up cash-strapped in retirement.\u201dWhen originally created, Social Security was designed to prevent the elderly and infirm from sinking into dire poverty. When most working Americans enjoyed a pension from their employer, Social Security was an additional source of income and made for a comfortable retirement. However, with an average monthly benefit just over $1,500 and few pensions, today\u2019s Social Security is not enough money for most Americans to maintain a middle-class standard of living, says the article “3 Reasons a Roth IRA Is a Perfect Supplement to Social Security” from Tuscon.com. It\u2019s important to plan for additional income streams and one to consider is the Roth IRA.Roth IRAs can be funded at any age. Many seniors today are continuing to work to generate income or to continue a fulfilling life. Their earnings can be put into a Roth IRA, regardless of age. If you are still working but don\u2019t need the paycheck, that\u2019s a perfect way to fund the Roth IRA.Withdrawals from a Roth won\u2019t trigger taxes on Social Security benefits. If your only income is Social Security, you probably won\u2019t have to worry about federal taxes. However, if you are working while you are collecting benefits, once your earnings reach a certain level, those benefits will be taxed.To calculate taxes on Social Security benefits, you\u2019ll need to determine your provisional income, which is the non-Social Security income plus half of your early benefit. If you earn between $25,000 and $44,000 as a single tax filer or between $32,000 and $44,000 as a married couple, you could be taxed as much as 50% of your Social Security benefits. If your single income goes past $34,000 and married income goes past $44,000, you could be taxed on up to 85% of your benefits.If you put money into a Roth IRA, withdrawals don\u2019t count towards your provisional income. That could leave you with more money from Social Security.A Roth IRA is flexible. The Roth IRA is the only tax-advantaged retirement savings plan that does not impose Required Minimum Distributions or RMDs. That\u2019s because you\u2019ve already paid taxes when funds went into the account. However, the flexibility is worth it. You can leave the money in the account for as long as you want, so savings continue to grow tax-free. You can also leave money to your heirs.While you don\u2019t have to put your savings into a Roth IRA, doing so throughout your career\u2014or starting at any age\u2014will give you benefits throughout retirement.Reference: Tuscon.com (Oct. 5, 2020) “3 Reasons a Roth IRA Is a Perfect Supplement to Social Security”For more information on elder law, asset preservation and estate planning, please visit my estate planning website."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/www.amorusolaw.com\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"How to Benefit from a Roth IRA and Social Security","item":"https:\/\/www.amorusolaw.com\/blog\/how-to-benefit-from-a-roth-ira-and-social-security-new-york-ny-white-plains-ny\/#breadcrumbitem"}]}]