Will going back to work end workers' Social Security benefits?

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Our daily roundup of retirement news your clients may be thinking about.

Ask Larry: Will going back to work end my benefits?
Clients aged 66 and older will continue receiving their Social Security retirement benefits if they opt to work again, according to this article on Forbes. As long as their earnings won't exceed the limit set by the Social Security Administration, they will not lose their benefits. Clients should check the limit with the SSA, as it resets the threshold every year.
How retirees are taxed
Retirees can expect a portion of their Social Security benefits to be taxed at the federal level if their combined income hits a certain threshold, according to this article on Morningstar. The combined income is the sum of their adjusted gross income, 50% of their benefits and nontaxable earnings. Under the new tax law, retirees aged 65 and above qualify for a deduction of $1,300, which is indexed yearly for inflation.

States where you'll pay the most, least in retirement taxes
Alaska, Wyoming and Delaware top the list of states where retirees pay the least taxes, according to a study by personal finance website GOBankingRates. These states impose no state taxes on Social Security and have low or no income taxes. "If you don't have income tax and you don't tax Social Security, you're going to be a great destination for retirees, even if you didn't make the top five," says analyst.

Your personal finance questions, answered: Why is putting an IRA into a trust so complicated?
Naming a trust as beneficiary of an IRA can be complicated, but such a move can be a better option, especially if the beneficiary is not ready to handle the windfall, according to this Q-and-A article on Motley Fool. "One of the biggest benefits of an IRA is being able to stretch out those required minimum distributions when the ultimate beneficiaries receive it, and sometimes if you don't do everything right inside a trust, you mess up the ability to stretch it out," says an expert.

The scary truth behind that E*trade super bowl retirement commercial
Clients who fall short in retirement saving may want to stay longer in the workforce to improve their prospects, according to this article on Money. Working longer will enable them to shorten their retirement horizon, delay Social Security for a bigger monthly payout and have a bigger nest egg by the time they retire. However, this option is not for everybody, as a study has found that 48% of seniors were compelled to retire because of poor health and other factors.

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Retirement planning Retirement readiness IRAs Tax planning Social Security benefits Social Security