How Social Security Is Taxed — And How to Avoid the Tax Torpedo

Social Security taxes are one of the most misunderstood parts of retirement planning — especially when it comes to how much of your benefits can actually become taxable. In this episode, we break down how Social Security is taxed at the federal level, why up to 85% of your benefits can be included as taxable income, and how the provisional income calculation determines what you owe. We explain how IRA withdrawals, pensions, and Required Minimum Distributions can unexpectedly increase taxes through the so-called “tax torpedo,” and why strategic planning matters. We also discuss Roth conversions, withdrawal sequencing, Qualified Charitable Distributions, recent state tax changes, and the long-term funding outlook for Social Security — and how all of it ties into building a more tax-efficient retirement strategy. 📩 If you'd like a personalized Roth conversion analysis, reach out to our team. Link to the OWLFI website with our contact info: https://www.owlfi.com/contact