How Much Can I Withdraw From My IRA While on Social Security? The 85% Tax Trap

How much can I withdraw from my IRA without increasing taxes on Social Security? Financial planner Andrew Matz explains how IRA withdrawals can affect the taxation of your Social Security benefits. There is no single “safe” withdrawal amount for every retiree. Your result depends on your filing status, Social Security benefits, IRA distributions, pensions, investment income, and other sources of income. Want help creating a coordinated retirement-income and tax strategy? Schedule an introductory call with Oak Road Wealth Management: https://calendar.app.google/eLdxjtJnW... In this video, you’ll learn: • Why withdrawing money from an IRA can make more of your Social Security taxable • How provisional income is calculated • When up to 50% or 85% of Social Security benefits may become taxable • Why “85% taxable” does not mean you pay an 85% tax rate • How to evaluate an IRA withdrawal before taking it • Why retirement withdrawal planning should consider your entire tax situation A withdrawal that appears manageable on its own can have a larger tax impact when combined with Social Security and other retirement income. Understanding how these different income sources interact can help you make more informed withdrawal decisions. CHAPTERS 00:00 How IRA withdrawals affect Social Security taxes 01:10 How Social Security benefits become taxable 02:55 Understanding provisional income 04:08 How an IRA withdrawal changes the calculation 05:48 The 50% and 85% Social Security tax thresholds 08:34 How much can you withdraw from your IRA? 10:39 Planning considerations and final takeaway Learn more about Oak Road Wealth Management: https://oakroadwealth.com/ Oak Road Wealth Management is a fee-only fiduciary financial planning and wealth management firm serving individuals and families in the Kansas City area and beyond. DISCLAIMER This video is provided for general educational and informational purposes only. It is not intended to provide individualized investment, tax, legal, or financial advice and should not be relied upon as such. The taxation of Social Security benefits and IRA withdrawals depends on individual circumstances, and tax laws may change. Consult qualified financial, tax, and legal professionals before making decisions regarding your retirement income. Investing involves risk, including the possible loss of principal. Past performance does not guarantee future results. #SocialSecurity #IRAWithdrawals #RetirementPlanning