Provisional Income and Retirement Planning

For more than two decades, Certified Financial Planner Robert M. Ryerson has worked with a team of tax, mortgage, and insurance professionals for the financial services firm New Century Planning. Robert M. Ryerson is a noted financial planning expert and has written articles for leading publications such as Forbes covering a number of important retirement topics, including required minimum distributions and provisional income.

Provisional income is a figure calculated by the IRS to determine if a Social Security recipient’s benefits should be taxed. Provisional income is derived by combining pension payments, IRA and 401(k) distributions, capital gains, and tax-free investments with 50 percent of the anticipated annual Social Security benefits. If this number exceeds $44,000 for a couple or $34,000 for an individual, only 15 percent of Social Security benefits can be collected tax-free.

If not planned for thoughtfully, provisional income can cause retirees to face unexpected penalties and taxes, which can reduce their living standards. With the assistance of a qualified financial planner, high-earning families and individuals can arrange their post-retirement income in order to minimize the tax liabilities.

Author

Robert Ryerson

Although Robert M. Ryerson completed all the necessary requirements to earn bachelor of arts degrees in both English and economics at Rutgers University, college policy at the time prohibited the issuance of dual degrees. As a result, he graduated from Rutgers with a single bachelor of arts in economics before finding employment as a stockbroker with Shearson Lehman Brothers in New York City. Robert M. Ryerson has since established himself as a respected estate administrator and legacy planner. In addition to his degree from Rutgers, Mr. Ryerson holds professional designations as both a Certified Financial Planner professional and a Certified Identity Theft Risk Management Specialist. He has shared his knowledge on the subject of identity theft as the author of the book What’s The Deal With Identity Theft?: A Plain-English Look at Our Fastest Growing Crime. He has also covered identity theft issues directly for students as the instructor of the adult education course Understanding Identity Theft: Our Fastest Growing Crime.

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