What is the Effect of 401k Withdrawal on Clients Who Opt to Claim Social Security Early?

#insurancefmo #insuranceagent #medicaretraining Happy early Groundhogs Day! You need to be well versed in Social Security if you want to be a Medicare expert. In today's episode, Sylvia Gordon is talking all things 401k and Social Security retirement. What are the different ways that your clients can be affected by drawing SS early? Hint: there's a lot. Tune in to find out. Reach out to us at Gordon Marketing or contact your marketer for Gordon Marketing's Medicare and Social Security Cheat Sheet. Follow our NEW podcast! Spotify - Google Podcasts - YouTube : KEEP UP TO DATE!!! Follow us on social media. Facebook: LinkedIn: Instagram: Twitter: Produced by Family Goat Multimedia Studio Gordon Marketing 20236 Hague Rd Noblesville, IN 46062 www.GordonMarketing.com (800) 388-8342...(read more)

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As a financial advisor, it's important to consider how your clients' decisions regarding their 401k withdrawals will impact their ability to receive Social Security benefits in the future. One major factor to consider is the age at which your clients choose to begin taking their Social Security benefits. If they choose to start taking their benefits before reaching full retirement age, they may face a reduction in their monthly benefit amount. This reduction can be as much as 30 percent if they begin taking benefits at age 62, which is the earliest age at which they can begin receiving them. If your clients plan to begin taking their Social Security benefits early, it's important to advise them on how it will impact their taxable income. For example, if they withdraw a large amount of money from their 401k, it could push them into a higher tax bracket and result in higher taxes on their Social Security benefits. This can ultimately reduce their monthly income and limit their ability to enjoy a comfortable retirement. Another impact of 401k withdrawals on Social Security benefits is the "earnings test" that may apply to those who begin taking Social Security benefits early. If your clients continue to work and earn income while receiving Social Security benefits, their benefits may be reduced if they exceed the annual earnings limit. In 2021, the earnings limit is $18,960 for those under full retirement age. However, it's important to note that once your clients reach full retirement age, there is no longer an earnings limit and they can earn as much as they want without it affecting their Social Security benefits. To minimize the impact of 401k withdrawals on Social Security benefits, it's important to advise your clients to have a comprehensive retirement plan in place. This plan should take into account their retirement income sources, including Social Security and 401k withdrawals, and how they can maximize these sources while minimizing tax implications and other potential penalties. In conclusion, 401k withdrawals can have a significant impact on your clients' ability to receive Social Security benefits, especially if they choose to begin taking benefits early. As a financial advisor, it's important to consider these factors and help your clients make informed decisions about their retirement plan. By doing so, they can enjoy a comfortable retirement without worrying about financial hurdles down the road. https://inflationprotection.org/what-is-the-effect-of-401k-withdrawal-on-clients-who-opt-to-claim-social-security-early/?feed_id=98673&_unique_id=64658e8e6d677 #Inflation #Retirement #GoldIRA #Wealth #Investing #401kearlywithdrawalexceptions #401kwithdrawalpenalty #401kwithdrawalstrategy #canitakemoneyoutofmy401k #cashingout401k #financialplanning2023 #FMO #gordonmarketing #howtocashout401k #insurancefmo #insuranceimo #insurancenma #rebeccagordon #retirementincome #retirementincomestreams #retirementplanning #retirementplanningat50 #stockmarketcrash2023 #sylviagordon #takingmoneyoutof401k #taxpenaltyfor401kwithdrawal #401k #401kearlywithdrawalexceptions #401kwithdrawalpenalty #401kwithdrawalstrategy #canitakemoneyoutofmy401k #cashingout401k #financialplanning2023 #FMO #gordonmarketing #howtocashout401k #insurancefmo #insuranceimo #insurancenma #rebeccagordon #retirementincome #retirementincomestreams #retirementplanning #retirementplanningat50 #stockmarketcrash2023 #sylviagordon #takingmoneyoutof401k #taxpenaltyfor401kwithdrawal