How IRAs Impact Social Security

Traditional IRAs impact Social Security in certain cases. Some IRA distributions count as income that could lower your benefits.

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In many cases, traditional IRAs impact Social Security benefits by increasing your taxable income. Having a solid plan for your IRA distributions can save you thousands of dollars, so it's worth understanding how these two pillars of retirement planning work together.

Combining Social Security benefits and an IRA can be an effective strategy for funding your retirement. However, if you take a distribution from a traditional (not Roth) IRA, you may have to pay taxes on your Social Security benefits. This can certainly have a major impact on your retirement income.

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Tom Taulli
Contributing Writer, Kiplinger.com

Tom Taulli has been developing software since the 1980s when he was in high school.  He sold his applications to a variety of publications. In college, he started his first company, which focused on the development of e-learning systems. He would go on to create other companies as well, including Hypermart.net that was sold to InfoSpace in 1996. Along the way, Tom has written columns for online publications such as Bloomberg, Forbes, Barron's and Kiplinger.  He has also written a variety of books, including Artificial Intelligence Basics:  A Non-Technical Introduction. He can be reached on Twitter at @ttaulli.