CPA Scott Adair discussed some of the considerations for people who decide to go back to work after retiring Monday on News 8 at Sunrise.
“There’s a lot of advice to give those people,” said Adair. “One of the things is you really need to take a look at what current retirement benefits you are receiving. Take a look at what potential impact going back to work could have on income taxes, could have Social Security benefits, could have on health care, and ultimately could have on your overall financial projections as you move forward in life.”
Adair called Social Security benefits the hot topic. “You could be receiving them at the age of sixty two, and you need to consider what impact going back to work may have on those, and the ability to generate additional income and potentially tax your Social Security benefits at a greater rate than they are today,” he said. “For your Social Security income limit, if you’re sixty two or older, you need to consider approximately fifteen thousand, seven hundred and twenty dollars as far as income goes before it could trip another wire before you wind up in another tax bracket for Social Security.”
Adair advised take a look at all of your income taxes. “I would say consult with your C-P-A as part of that process, or pull out the prior year’s tax return and start taking a look to see where those brackets change, from fifteen to twenty eight and higher brackets into that, to make sure you’re not increasing your income to trip yourself into an additional tax bracket, which could penalize you from an income-perspective,” he said.
There are health care considerations as well. “If you’re sixty five and older and receiving Medicare benefits, you certainly want to check with your employer to determine what benefits, and how the Medicare Plan may work with your current employer’s health care benefits as well,” Adair said.
Adair added it’s important to have your retirement accounts in order as well. “Consult with your C-P-A or financial advisor, and check with the Social Security Administration’s website as well,” he said. “They can give you some certainly helpful hints as to what you should be doing to prepare. Make sure you take full advantage of those benefits you receive from the Society Security Administration.”
For more information, visit the New York State Society of CPAs website, click here.