Social Security and Planning Ahead for Your Retirement

Most Americans are unaware that when they begin drawing Social Security can have a huge impact on how much they will receive over their lifetime. An equal amount of those who will draw Social Security are unaware they may have to pay taxes on those benefits. In fact, about 56 percent of Americans do pay taxes on their Social Security benefits, however, Social Security tax treatments are typically more favorable than the tax treatments for traditional IRA or 401(k) withdrawals. Further, there are things you can do now, even if you are only in your thirties, forties or fifties to ensure your retirement years are not fraught with financial difficulties.

Consider a Roth Conversion

While not every person in America is able to contribute to a Roth 401(k) or Roth IRA, some can benefit from a Roth IRA’s tax-free growth potential. Existing money from a traditional IRA or workplace retirement savings account can potentially be converted to a Roth IRA account (a partial Roth conversion). Remember, withdrawals for a Roth account are potentially tax-free. What this means is that you might consider converting only the amount which would bring you to the top of your current federal income tax bracket, as it will be considered taxable income.

Martinson & Beason, PC Welcomes the Lamont Landers Band to Northside Square!

Martinson & Beason, PC is pleased to sponsor the Lamont Landers Band on Thursday, September 6^th at 5:00 PM, as part of Downtown Huntsville, Inc.’s Under the Lights summer music series. The Under the Lights series consists of free live music and fun for all ages every Thursday from July through September. The band will play outside the Martinson & Beason office at 115 Northside Square, Huntsville, AL 35801. Make sure to bring your lawn chair and enjoy the food and drink offered by nearby restaurants and bars! The Lamont Landers Band is currently based out of Nashville, Tennessee, and was recently featured on the Fox TV talent competition Showtime at the Apollo. The band plays an eclectic mix of Soul, Funk, and R&B. Their music is available on iTunes, Spotify, Amazon, and in CD format.