Withholdings from Social security

Forum|Forum|5 years ago
February 23, 2021
3 replies
22 views

We now live exclusively on Social security income however In the next three years we will be transitioning our IRA money( Taxable) to a Roth IRA (50K per year)so income will be around 80K We don't presently withhold anything from our Social Security checks but will have enough money withheld from the IRA to pay all taxes due. So are we still required to withhold money during the year from our Social security checks or can we just withdraw enough money from the IRA in Dec. 2021 to cover all taxes due for that year?

Not A Product Question

SweetieJean

Alumni - Champ

You can do either or both. Another option is to make an estimated tax payment when you do the Roth conversion.

SweetieJean

Alumni - Champ

Also keep in mind that any large Roth conversion could cause your Medicare premiums to increase two years down the road. You might consider converting a little each year over 2 or more tax years.

Opus 17

Level 15

I can't think of anyone on this board who would be qualified to give detailed advice in your case. You need to be cautious because showing too much income can not only make social security taxable, but can also affect your Medicare premiums. Can you afford to do the Roth conversion more slowly? That might be important in your case. You need a financial advisor who can run the numbers for you in a personalized way.