The National Directory of Certified Public Accountants

Ask A CPA - Investments & Financial Planning

Is It Possible To Reduce Taxable Social Security Benefits By Shifting Taxable Or Tax Free Investments Into A Tax Deferred Annuity ?

Yes, depending upon the amount of your income and filing status. Deferred annuity income is not calculated as part of the amount of Social Security benefits subject to income tax, whereas taxable and tax-free interest and dividends are.

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