317-398-9753
[email protected]
Your Business. Your Family. Our Priority.
A company owners’ potential for personal financial security usually depends on the success of the business. Our commitment and responsibility is to help keep your business running smoothly and to help achieve your personal financial goals. Whether you are a business or an individual, our specialized staff will provide you with assistance in all your tax, reporting, financial and business affairs.
We're proud members of:
Brammer & Yeend is an independently owned and operated member firm of CPA Connect, a companion association to CPAmerica International
Financial information and reporting should not be a diversion for business owners, instead, financial information should be accurate, available, and insightful. We leverage experience and technology to provide business owners with dynamic resources and management tools.
Our personal services are designed to help busy, successful families manage their finances and grow their wealth with confidence and peace of mind. We do this by working together with our business solutions, allowing us to partner with clients and coordinate business and personal planning in order to meet their most important goals.
We strive to provide excellent service and solutions that fit our client’s specific needs and are industry appropriate. Our experienced CPAs have worked with clients in a variety of industries and understand the intricacies of each and apply the best solution possible. Over the years we have serviced clients in industries including agribusiness, retail, construction, manufacturing, food & beverage and many more. Below are some of our industries where we have specialized experience and expertise.
Key Takeaways:
If much of your retirement savings are held in a traditional IRA or 401(k), you could get a significant tax surprise when you start making withdrawals. A Roth account, on the other hand, offers tax-free qualified withdrawals.
But don’t convert to a Roth account simply because tax-free income sounds better than taxable income. After all, you’re paying for that future tax benefit upfront. With a Roth conversion, you pay income tax on the money you convert in the year you convert it. Whether that upfront tax bill is worth it depends on your income, tax bracket, and retirement plans.
A Roth conversion shifts money from a traditional IRA or 401(k) into a Roth account. When you convert from these pre-tax accounts, the amount converted generally counts as taxable income that year. For example, if you convert $50,000, you could add $50,000 to your taxable income.
Once the money is in the Roth account, however, it can grow tax-free. Qualified withdrawals are also tax-free. And unlike traditional IRAs, Roth IRAs don’t require the original account owner to take required minimum distributions (RMDs).
The basic goal of a Roth conversion is to pay taxes when your rate is relatively low rather than waiting and potentially paying a higher rate later.
For instance, if you recently retired, you may be in a lower tax bracket than you will be once Social Security and RMDs begin. That lower-income window could be an ideal time to consider a Roth conversion.
On the flip side, if you’re currently earning a high salary but expect a significant drop in taxable income after retirement, paying taxes on a conversion now may not be the right move.
Your income, tax bracket, retirement timeline, and future income sources all need to be considered when thinking about a Roth conversion.
Converting too much at once could create a large tax bill. It could also push some of your income into a higher tax bracket. Instead, convert just enough each year to keep within your current tax bracket. This method prolongs the process, but it keeps your tax bill under control. However, it isn’t something you want to guess at. A tax professional can help you figure out the right approach for your situation.
Medicare Part B and Part D premiums are based on your income from two years back. If a Roth conversion boosts your income, you may pay an income-related surcharge known as IRMAA (income-related monthly adjustment amount). This can trigger higher Medicare premiums.
There are a couple of circumstances where a conversion may not be the right move:
You also need to consider how you’ll pay the conversion tax. Ideally, you want to use money outside of your retirement accounts so the full converted balance remains untouched.
Whether a Roth conversion makes sense depends on your current income, your future income, and how long the money can grow. Everyone’s circumstances are different, and there is no one-size-fits-all approach here. Talk to a tax professional who can help you tackle the numbers and come up with a plan.
Key Takeaways:
Becoming wealthy doesn’t necessarily require a high-paying career, a successful business, a grand inheritance, or a winning lottery ticket. Plenty of people reach millionaire status without any of that, but it requires discipline and strategy. Here are the habits that offer a realistic path to wealth for middle-class income earners.
If you want to build wealth, you need to have money left over to save and invest. This won’t happen if your lifestyle increases when your income increases. Spending everything leaves you with nothing left to grow.
Middle-class income workers who build real wealth aren’t necessarily earning more. They simply keep a gap between their income and their spending. When they get a raise or a bonus, they save or invest it. They don’t spend it on material upgrades. This is the foundational habit of building wealth.
Steer clear of credit card debt and other high-interest borrowing. Pay off your cards in full and save for big purchases instead of financing them. Consumer debt claims your money that could be used to build an emergency fund, invest, or increase retirement contributions.
If you’re serious about building wealth, paying off high-interest debt is one of the smartest moves you can make. And once you’ve accomplished it, consider shifting some of the money you used for debt payments to savings and investments.
Your take-home pay may not stop with your paycheck. If your company matches 401(k) contributions, contributing enough to receive the full match can immediately increase what goes toward your retirement. That’s real money. Don’t walk away from it.
The same goes for health savings accounts (HSAs), tuition assistance, life insurance plans, employee stock programs, wellness incentives, or other perks in your benefits package. Make a habit of reviewing what’s available during open enrollment each year.
An employer-sponsored 401(k) is a solid start, but don’t stop there. People who build lasting wealth look for additional investment opportunities, like Roth IRAs and regular brokerage accounts.
Diversifying investments gives you more control and more options down the road, instead of relying on a single employer-run plan. A simple, low-cost index fund, added to consistently, does most of the work on its own. The important part is consistency. Regular investing over many years gives compounding more time to work in your favor.
There will always be someone to compare yourself to. There will always be flashy cars, bigger homes, and more exotic vacations splashed across social media. Chasing these things can lead to endless expenses.
Instead, you decide what’s worth your hard-earned money. You decide what purchases genuinely improve your life. Invest in those things and leave the rest behind. This becomes especially important with raises and bonuses. Keep your expenses steady even when your income increases. This can free up significant money for investing without making your daily life feel restrictive.
For middle-class workers who want to build lasting wealth, the process is actually ordinary and boring: control spending, stay out of debt, maximize workplace benefits, and invest money consistently. It won’t happen overnight, but over years, your average paycheck can work to build something much bigger.
Key Takeaways:
Trump Accounts officially launched on July 4, 2026. Part of the One Big Beautiful Bill Act (OBBBA), these are long-term investment accounts created to help children build wealth from an early age. Here’s what parents should know.
A Trump Account is a new type of investment account for kids under the age of 18. It’s like a starter IRA. The child owns the account, but a parent or guardian manages it until that child turns 18. The money goes into low-cost index funds, where it is meant to sit and grow for years.
Any U.S. citizen under 18 with a Social Security number can have a Trump Account opened for them, but not every child gets government funding for their account.
Children born between January 1, 2025 and December 31, 2028, automatically get a one-time $1,000 seed deposit from the U.S. Treasury once the account is opened.
Parents or guardians can open a Trump Account by filing IRS Form 4547 or through the online portal at TrumpAccounts.gov. The deadline to open an account is one year before your child turns 18, but if your child was born in the eligible window to receive the $1,000 federal deposit, there’s no reason to wait.
Once the account is open, parents, grandparents, other family members, and even employers can chip in. Individuals can contribute up to $5,000 a year, and this is expected to adjust for inflation over time. Employers can contribute up to $2,500 a year on top of that, which won’t count toward the employee’s taxable income.
In addition to these deposits, three other types of deposits are also allowed:
Unlike a regular brokerage account, Trump accounts don’t allow you to choose individual stocks. Money is invested in low-cost mutual funds or ETFs that track a broad index of U.S. stocks, like the S&P 500. The law capped the fees at 0.10% to keep costs down. This approach is meant to be simple for long-term growth rather than short-term trading.
Family contributions are made with after-tax dollars, and the investments grow tax-deferred, meaning you typically won’t owe taxes while the money remains in the account. Taxes are usually due when the money is withdrawn.
The funds generally can’t be touched before January 1 of the year your child turns 18. There are some exceptions, like rolling over excess contributions or handling the account after a death. But for the most part, this is hands-off money until adulthood.
Once your child turns 18, the account converts to a traditional IRA, and normal IRA rules apply. That means withdrawals before age 59 ½ can trigger a 10% penalty on top of regular income tax, with the usual IRA exceptions.
Trump Accounts aren’t the only option for saving for a child’s future, and they’re not automatically the best one.
There is no right answer here, and many families can use more than one option. It’s best to treat Trump Accounts as one more tool available for planning your child’s financial future, but not the only tool.
Key Takeaways:
When planning for retirement, the focus is usually on how much to save, but many people overlook how much of that money could end up going to taxes. And then tax season rolls around, and they owe more than expected.
Retirement often brings several sources of income, which could mean a mixture of tax rules. Understanding those rules before retirement can help you avoid surprises and make your savings last longer.
Most pension income is fully taxable if your employer made contributions with pre-tax dollars.
Annuities can work differently. If you purchased an annuity with money you’d already paid taxes on, you usually won’t pay taxes on that same money again. But any growth your money earned inside the annuity is generally taxable when you receive your payments.
You may also be able to choose to have taxes withheld from these payments throughout the year, making it easier to dodge a large tax bill when you file your return.
Once you turn 73, the government requires you to withdraw a minimum amount from your traditional IRA or 401(k) each year. If you skip it or take out too little, you could end up owing a penalty worth 25% of the shortfall.
The smart move is to plan ahead. Some retirees start taking smaller withdrawals well before RMDs are required. This way, they’re not forced to take out a huge chunk in one year and land in a higher tax bracket.
Something that often catches people off guard is the fact that Social Security benefits can be taxed. Depending on your total income, up to 85% of your benefits may be subject to federal income tax. Income from retirement accounts, pensions, investments, and even part-time work can all affect how much of your benefit becomes taxable.
There’s a bit of good news for 2025 through 2028. The Trump tax bill created a federal deduction that gives taxpayers 65 and older an extra $6,000 off their taxable income ($12,000 for couples who both qualify). This is on top of the standard senior deduction already in place. It starts to phase out once your income passes $75,000 ($150,000 for joint filers). It won’t erase your tax bill, but it can reduce how much of your Social Security ends up getting taxed.
Retirees can continue to invest after they stop working, but income from those investments can create its own tax obligations. If you sell stocks, mutual funds, or other investments, you could be subject to capital gains taxes. Dividend payments may also be taxable, even if you leave the money invested instead of spending it.
Before selling investments, consider how the sale could affect your tax bill for the year. In some cases, spreading sales over multiple years may help reduce taxes.
State rules vary widely. Indian, for example, Social Security benefits or military retirement pay. However, withdrawals from traditional IRAs and 401(k)s, along with most private pension income, are generally subject to Indiana’s state income tax. Depending on where you live in the state, county income taxes may apply as well.
The tax rules above aren’t exactly hidden, but they’re easy to overlook until you get the tax bill. A little planning today can leave you with more income to enjoy in your golden years.
Social Security has a money problem that lawmakers can no longer ignore. According to current projections, Social Security’s trust funds are expected to run out of reserves within the next decade. That doesn’t mean Social Security is going bankrupt, but if nothing changes, benefits could be cut across the board.
The good news is that lawmakers are beginning to put forward solutions. The bad news is that none of them are painless. Here are three policy recommendations lawmakers are talking about.
One proposal comes from Senator Bill Cassidy, R-La.
Under Cassidy’s plan, the federal government would borrow 1.5 trillion and invest the money in a separate fund modeled after retirement savings plans such as 401(k)s. The fund would not be part of Social Security’s existing trust funds. Instead, it would be held in escrow for 75 years. Over time, the investment returns would build up a reserve that could offset future shortfalls and help pay scheduled Social Security benefits.
Supporters of this plan back the long-term investment growth approach. They say the math works if markets perform as expected. Critics, however, worry about the risks of tying Social Security’s future to market performance and adding $1.5 trillion to the national debt upfront.
In 2026, Social Security payroll taxes only apply to wages up to $184,500. Earnings above that are untaxed.
Enter Senator Sheldon Whitehouse, D-R.I.
His Medicare and Social Security Fair Share Act would apply Social Security taxes to earnings above $400,000. It would also apply the tax to investment income. And it would close a loophole that lets some wealthy owners of pass-through businesses avoid paying Medicare taxes.
Supporters of this bill say higher earners should shoulder more of the burden because income inequality has increased over time.
Critics argue that it could discourage investment and entrepreneurship while shifting more of the burden to successful business owners and professionals.
Some policymakers are focusing on benefits rather than taxes.
The Committee for a Responsible Federal Budget has proposed limiting Social Security benefits for high earners who consistently hit the taxable maximum earnings during their working years. Rather than increasing payroll taxes, the plan would cap annual Social Security benefits at $100,000 for married couples and $50,000 for individuals.
The plan is based on the idea that Social Security was designed as a safety net, not a retirement windfall for the wealthy.
Supporters of this plan say that targeting benefits for those with the greatest financial need could help preserve the program’s long-term stability.
Critics argue that workers who paid more into the system throughout their careers should receive the benefits they earned.
At this point, nothing is finalized. Lawmakers could choose one of these proposals, combine several approaches, or pursue an entirely different solution. But it seems increasingly likely that Congress will pass some combination of tax increases and benefit adjustments.
For workers, the best move is to keep building retirement savings outside of Social Security. For retirees, stay informed and let your representatives know where you stand.
For many Americans, retirement isn’t a sudden transition but a gradual one. Many Americans leave their full-time careers to take part-time jobs, freelance, consult in their fields, or pursue new opportunities that generate income. But if you’re also drawing Social Security at the same time, the federal government has rules about how much you can earn before your benefits take a hit.
If you’re collecting Social Security while still working, it’s important to understand how your earnings can affect your benefits.
Social Security allows you to work while receiving benefits. However, there are limits if you claim benefits before reaching your full retirement age (FRA).
This changes from year to year, but in 2026, individuals who are younger than full retirement age for the entire year can earn up to $24,480 without affecting their benefits. Once earnings exceed that amount, Social Security withholds $1 for every $2 earned above the limit.
The threshold is higher in the year you reach your full retirement age. If you hit full retirement age by December 31, 2026, you can earn up to $65,160 before any reduction kicks in. Beyond that threshold, Social Security withholds $1 in benefits for every $3 earned above the limit.
Once you actually reach full retirement age, the earnings limit goes away. You can earn as much as you want, and your monthly benefit won’t be touched.
Also note that any withheld benefits aren’t permanently lost. The Social Security Administration (SSA) recalculates your payment at full retirement age to account for the months when benefits were withheld, and your monthly check gets adjusted upward.
If you’re still working and don’t need Social Security income right away, think about holding off on claiming.
Benefits grow approximately 6-8% for each year you delay past 62. Delaying also means sidestepping the earnings limit entirely.
Many people spend decades saving for retirement but don’t fully consider how Social Security fits into their overall financial picture. The earlier you understand your options, the more flexibility you’ll have when deciding when to retire and when to claim benefits.
Here are a few planning tips that can make a real difference:
Retirement looks different for everyone, but if you plan to work while receiving Social Security, make sure you understand the earnings limits that apply before FRA.
Keeping an open line of communication is important to us. We invite you to reach out to us either by phone, email, or this form to ask questions, request an appointment or talk about any finance-related matter that comes to your mind.
317-398-9753
8 Public Square
Shelbyville, IN, 46176
Your Business. Your Family. Our Priority.
A company owners’ potential for personal financial security usually depends on the success of the business. Our commitment and responsibility is to help keep your business running smoothly and to help achieve your personal financial goals. Whether you are a business or an individual, our specialized staff will provide you with assistance in all your tax, reporting, financial and business affairs.
We're proud members of:
Brammer & Yeend is an independently owned and operated member firm of CPA Connect, a companion association to CPAmerica International
Financial information and reporting should not be a diversion for business owners, instead, financial information should be accurate, available, and insightful. We leverage experience and technology to provide business owners with dynamic resources and management tools.
Our personal services are designed to help busy, successful families manage their finances and grow their wealth with confidence and peace of mind. We do this by working together with our business solutions, allowing us to partner with clients and coordinate business and personal planning in order to meet their most important goals.
We strive to provide excellent service and solutions that fit our client’s specific needs and are industry appropriate. Our experienced CPAs have worked with clients in a variety of industries and understand the intricacies of each and apply the best solution possible. Over the years we have serviced clients in industries including agribusiness, retail, construction, manufacturing, food & beverage and many more. Below are some of our industries where we have specialized experience and expertise.
Key Takeaways:
If much of your retirement savings are held in a traditional IRA or 401(k), you could get a significant tax surprise when you start making withdrawals. A Roth account, on the other hand, offers tax-free qualified withdrawals.
But don’t convert to a Roth account simply because tax-free income sounds better than taxable income. After all, you’re paying for that future tax benefit upfront. With a Roth conversion, you pay income tax on the money you convert in the year you convert it. Whether that upfront tax bill is worth it depends on your income, tax bracket, and retirement plans.
A Roth conversion shifts money from a traditional IRA or 401(k) into a Roth account. When you convert from these pre-tax accounts, the amount converted generally counts as taxable income that year. For example, if you convert $50,000, you could add $50,000 to your taxable income.
Once the money is in the Roth account, however, it can grow tax-free. Qualified withdrawals are also tax-free. And unlike traditional IRAs, Roth IRAs don’t require the original account owner to take required minimum distributions (RMDs).
The basic goal of a Roth conversion is to pay taxes when your rate is relatively low rather than waiting and potentially paying a higher rate later.
For instance, if you recently retired, you may be in a lower tax bracket than you will be once Social Security and RMDs begin. That lower-income window could be an ideal time to consider a Roth conversion.
On the flip side, if you’re currently earning a high salary but expect a significant drop in taxable income after retirement, paying taxes on a conversion now may not be the right move.
Your income, tax bracket, retirement timeline, and future income sources all need to be considered when thinking about a Roth conversion.
Converting too much at once could create a large tax bill. It could also push some of your income into a higher tax bracket. Instead, convert just enough each year to keep within your current tax bracket. This method prolongs the process, but it keeps your tax bill under control. However, it isn’t something you want to guess at. A tax professional can help you figure out the right approach for your situation.
Medicare Part B and Part D premiums are based on your income from two years back. If a Roth conversion boosts your income, you may pay an income-related surcharge known as IRMAA (income-related monthly adjustment amount). This can trigger higher Medicare premiums.
There are a couple of circumstances where a conversion may not be the right move:
You also need to consider how you’ll pay the conversion tax. Ideally, you want to use money outside of your retirement accounts so the full converted balance remains untouched.
Whether a Roth conversion makes sense depends on your current income, your future income, and how long the money can grow. Everyone’s circumstances are different, and there is no one-size-fits-all approach here. Talk to a tax professional who can help you tackle the numbers and come up with a plan.
Key Takeaways:
Becoming wealthy doesn’t necessarily require a high-paying career, a successful business, a grand inheritance, or a winning lottery ticket. Plenty of people reach millionaire status without any of that, but it requires discipline and strategy. Here are the habits that offer a realistic path to wealth for middle-class income earners.
If you want to build wealth, you need to have money left over to save and invest. This won’t happen if your lifestyle increases when your income increases. Spending everything leaves you with nothing left to grow.
Middle-class income workers who build real wealth aren’t necessarily earning more. They simply keep a gap between their income and their spending. When they get a raise or a bonus, they save or invest it. They don’t spend it on material upgrades. This is the foundational habit of building wealth.
Steer clear of credit card debt and other high-interest borrowing. Pay off your cards in full and save for big purchases instead of financing them. Consumer debt claims your money that could be used to build an emergency fund, invest, or increase retirement contributions.
If you’re serious about building wealth, paying off high-interest debt is one of the smartest moves you can make. And once you’ve accomplished it, consider shifting some of the money you used for debt payments to savings and investments.
Your take-home pay may not stop with your paycheck. If your company matches 401(k) contributions, contributing enough to receive the full match can immediately increase what goes toward your retirement. That’s real money. Don’t walk away from it.
The same goes for health savings accounts (HSAs), tuition assistance, life insurance plans, employee stock programs, wellness incentives, or other perks in your benefits package. Make a habit of reviewing what’s available during open enrollment each year.
An employer-sponsored 401(k) is a solid start, but don’t stop there. People who build lasting wealth look for additional investment opportunities, like Roth IRAs and regular brokerage accounts.
Diversifying investments gives you more control and more options down the road, instead of relying on a single employer-run plan. A simple, low-cost index fund, added to consistently, does most of the work on its own. The important part is consistency. Regular investing over many years gives compounding more time to work in your favor.
There will always be someone to compare yourself to. There will always be flashy cars, bigger homes, and more exotic vacations splashed across social media. Chasing these things can lead to endless expenses.
Instead, you decide what’s worth your hard-earned money. You decide what purchases genuinely improve your life. Invest in those things and leave the rest behind. This becomes especially important with raises and bonuses. Keep your expenses steady even when your income increases. This can free up significant money for investing without making your daily life feel restrictive.
For middle-class workers who want to build lasting wealth, the process is actually ordinary and boring: control spending, stay out of debt, maximize workplace benefits, and invest money consistently. It won’t happen overnight, but over years, your average paycheck can work to build something much bigger.
Key Takeaways:
Trump Accounts officially launched on July 4, 2026. Part of the One Big Beautiful Bill Act (OBBBA), these are long-term investment accounts created to help children build wealth from an early age. Here’s what parents should know.
A Trump Account is a new type of investment account for kids under the age of 18. It’s like a starter IRA. The child owns the account, but a parent or guardian manages it until that child turns 18. The money goes into low-cost index funds, where it is meant to sit and grow for years.
Any U.S. citizen under 18 with a Social Security number can have a Trump Account opened for them, but not every child gets government funding for their account.
Children born between January 1, 2025 and December 31, 2028, automatically get a one-time $1,000 seed deposit from the U.S. Treasury once the account is opened.
Parents or guardians can open a Trump Account by filing IRS Form 4547 or through the online portal at TrumpAccounts.gov. The deadline to open an account is one year before your child turns 18, but if your child was born in the eligible window to receive the $1,000 federal deposit, there’s no reason to wait.
Once the account is open, parents, grandparents, other family members, and even employers can chip in. Individuals can contribute up to $5,000 a year, and this is expected to adjust for inflation over time. Employers can contribute up to $2,500 a year on top of that, which won’t count toward the employee’s taxable income.
In addition to these deposits, three other types of deposits are also allowed:
Unlike a regular brokerage account, Trump accounts don’t allow you to choose individual stocks. Money is invested in low-cost mutual funds or ETFs that track a broad index of U.S. stocks, like the S&P 500. The law capped the fees at 0.10% to keep costs down. This approach is meant to be simple for long-term growth rather than short-term trading.
Family contributions are made with after-tax dollars, and the investments grow tax-deferred, meaning you typically won’t owe taxes while the money remains in the account. Taxes are usually due when the money is withdrawn.
The funds generally can’t be touched before January 1 of the year your child turns 18. There are some exceptions, like rolling over excess contributions or handling the account after a death. But for the most part, this is hands-off money until adulthood.
Once your child turns 18, the account converts to a traditional IRA, and normal IRA rules apply. That means withdrawals before age 59 ½ can trigger a 10% penalty on top of regular income tax, with the usual IRA exceptions.
Trump Accounts aren’t the only option for saving for a child’s future, and they’re not automatically the best one.
There is no right answer here, and many families can use more than one option. It’s best to treat Trump Accounts as one more tool available for planning your child’s financial future, but not the only tool.
Key Takeaways:
When planning for retirement, the focus is usually on how much to save, but many people overlook how much of that money could end up going to taxes. And then tax season rolls around, and they owe more than expected.
Retirement often brings several sources of income, which could mean a mixture of tax rules. Understanding those rules before retirement can help you avoid surprises and make your savings last longer.
Most pension income is fully taxable if your employer made contributions with pre-tax dollars.
Annuities can work differently. If you purchased an annuity with money you’d already paid taxes on, you usually won’t pay taxes on that same money again. But any growth your money earned inside the annuity is generally taxable when you receive your payments.
You may also be able to choose to have taxes withheld from these payments throughout the year, making it easier to dodge a large tax bill when you file your return.
Once you turn 73, the government requires you to withdraw a minimum amount from your traditional IRA or 401(k) each year. If you skip it or take out too little, you could end up owing a penalty worth 25% of the shortfall.
The smart move is to plan ahead. Some retirees start taking smaller withdrawals well before RMDs are required. This way, they’re not forced to take out a huge chunk in one year and land in a higher tax bracket.
Something that often catches people off guard is the fact that Social Security benefits can be taxed. Depending on your total income, up to 85% of your benefits may be subject to federal income tax. Income from retirement accounts, pensions, investments, and even part-time work can all affect how much of your benefit becomes taxable.
There’s a bit of good news for 2025 through 2028. The Trump tax bill created a federal deduction that gives taxpayers 65 and older an extra $6,000 off their taxable income ($12,000 for couples who both qualify). This is on top of the standard senior deduction already in place. It starts to phase out once your income passes $75,000 ($150,000 for joint filers). It won’t erase your tax bill, but it can reduce how much of your Social Security ends up getting taxed.
Retirees can continue to invest after they stop working, but income from those investments can create its own tax obligations. If you sell stocks, mutual funds, or other investments, you could be subject to capital gains taxes. Dividend payments may also be taxable, even if you leave the money invested instead of spending it.
Before selling investments, consider how the sale could affect your tax bill for the year. In some cases, spreading sales over multiple years may help reduce taxes.
State rules vary widely. Indian, for example, Social Security benefits or military retirement pay. However, withdrawals from traditional IRAs and 401(k)s, along with most private pension income, are generally subject to Indiana’s state income tax. Depending on where you live in the state, county income taxes may apply as well.
The tax rules above aren’t exactly hidden, but they’re easy to overlook until you get the tax bill. A little planning today can leave you with more income to enjoy in your golden years.
Social Security has a money problem that lawmakers can no longer ignore. According to current projections, Social Security’s trust funds are expected to run out of reserves within the next decade. That doesn’t mean Social Security is going bankrupt, but if nothing changes, benefits could be cut across the board.
The good news is that lawmakers are beginning to put forward solutions. The bad news is that none of them are painless. Here are three policy recommendations lawmakers are talking about.
One proposal comes from Senator Bill Cassidy, R-La.
Under Cassidy’s plan, the federal government would borrow 1.5 trillion and invest the money in a separate fund modeled after retirement savings plans such as 401(k)s. The fund would not be part of Social Security’s existing trust funds. Instead, it would be held in escrow for 75 years. Over time, the investment returns would build up a reserve that could offset future shortfalls and help pay scheduled Social Security benefits.
Supporters of this plan back the long-term investment growth approach. They say the math works if markets perform as expected. Critics, however, worry about the risks of tying Social Security’s future to market performance and adding $1.5 trillion to the national debt upfront.
In 2026, Social Security payroll taxes only apply to wages up to $184,500. Earnings above that are untaxed.
Enter Senator Sheldon Whitehouse, D-R.I.
His Medicare and Social Security Fair Share Act would apply Social Security taxes to earnings above $400,000. It would also apply the tax to investment income. And it would close a loophole that lets some wealthy owners of pass-through businesses avoid paying Medicare taxes.
Supporters of this bill say higher earners should shoulder more of the burden because income inequality has increased over time.
Critics argue that it could discourage investment and entrepreneurship while shifting more of the burden to successful business owners and professionals.
Some policymakers are focusing on benefits rather than taxes.
The Committee for a Responsible Federal Budget has proposed limiting Social Security benefits for high earners who consistently hit the taxable maximum earnings during their working years. Rather than increasing payroll taxes, the plan would cap annual Social Security benefits at $100,000 for married couples and $50,000 for individuals.
The plan is based on the idea that Social Security was designed as a safety net, not a retirement windfall for the wealthy.
Supporters of this plan say that targeting benefits for those with the greatest financial need could help preserve the program’s long-term stability.
Critics argue that workers who paid more into the system throughout their careers should receive the benefits they earned.
At this point, nothing is finalized. Lawmakers could choose one of these proposals, combine several approaches, or pursue an entirely different solution. But it seems increasingly likely that Congress will pass some combination of tax increases and benefit adjustments.
For workers, the best move is to keep building retirement savings outside of Social Security. For retirees, stay informed and let your representatives know where you stand.
For many Americans, retirement isn’t a sudden transition but a gradual one. Many Americans leave their full-time careers to take part-time jobs, freelance, consult in their fields, or pursue new opportunities that generate income. But if you’re also drawing Social Security at the same time, the federal government has rules about how much you can earn before your benefits take a hit.
If you’re collecting Social Security while still working, it’s important to understand how your earnings can affect your benefits.
Social Security allows you to work while receiving benefits. However, there are limits if you claim benefits before reaching your full retirement age (FRA).
This changes from year to year, but in 2026, individuals who are younger than full retirement age for the entire year can earn up to $24,480 without affecting their benefits. Once earnings exceed that amount, Social Security withholds $1 for every $2 earned above the limit.
The threshold is higher in the year you reach your full retirement age. If you hit full retirement age by December 31, 2026, you can earn up to $65,160 before any reduction kicks in. Beyond that threshold, Social Security withholds $1 in benefits for every $3 earned above the limit.
Once you actually reach full retirement age, the earnings limit goes away. You can earn as much as you want, and your monthly benefit won’t be touched.
Also note that any withheld benefits aren’t permanently lost. The Social Security Administration (SSA) recalculates your payment at full retirement age to account for the months when benefits were withheld, and your monthly check gets adjusted upward.
If you’re still working and don’t need Social Security income right away, think about holding off on claiming.
Benefits grow approximately 6-8% for each year you delay past 62. Delaying also means sidestepping the earnings limit entirely.
Many people spend decades saving for retirement but don’t fully consider how Social Security fits into their overall financial picture. The earlier you understand your options, the more flexibility you’ll have when deciding when to retire and when to claim benefits.
Here are a few planning tips that can make a real difference:
Retirement looks different for everyone, but if you plan to work while receiving Social Security, make sure you understand the earnings limits that apply before FRA.
Keeping an open line of communication is important to us. We invite you to reach out to us either by phone, email, or this form to ask questions, request an appointment or talk about any finance-related matter that comes to your mind.
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Shelbyville, IN, 46176
