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Thank you. I will be 68 in February, have been employed by

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Thank you. I will...
Thank you. I will be 68 in February, have been employed by same bank for 32 years, and want to retire. Financial advisors have advised that my 401K etc., will provide enough income (dividends, interest) when combined with Social Security. I am really having a hard time working right now due to the stress, and want to retire right away, BUT is there any advantaqe to waiting until the end of 2015?? Thank you!
Submitted: 2 years ago.Category: Tax
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Answered in 6 minutes by:
9/10/2015
Tax Professional: Robin D., Senior Tax Advisor 4 replied 2 years ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15,886
Experience: 15years with H & R Block. Divisional leader, Instructor
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Hello

If you wait till the end of 2015 then you will not receive as much from your 401K so your income will be less which means less tax.

It is already Sept so there are just 3 months left till the end of the year and depending on how much you take out each month that may not be that much of a difference.

If you waited till 2016 and had no wages to add to the income then that might make less of your SS taxable. If you have more than your "base" amount in income then some of your SS can be taxable. So making sure that you stay below that "base" helps keep you from paying tax on your SS (no more than 85% of your SS can be taxed).

Perhaps you need to look at the stress level and the problems it recreates. The tax (at this late in the year) is going to be minimal.

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Tax Professional: Robin D., Senior Tax Advisor 4 replied 2 years ago

If my answer addressed your question please rate below or above (let me know if you have difficulty as I believe the system changed).

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