Dear Rusty: I’m 63, married, and we file a joint tax return. If I claim Social Security now and keep working and earn $7,000 more per year than the annual limit of $19,560, I know I’d have benefits withheld at the rate of $1 for every $2 over the limit ($3,500). But if I were to contribute $7,000 to a conventional (not Roth) IRA and take the deduction, would this reduce my earned income and eliminate the SS benefit withholding? And will such an IRA deduction help avoid taxation of my SS benefits if I am above the $32,000 taxation threshold for married – filing jointly? I’m trying to figure how much I can afford to earn while collecting Social Security benefits. Signed: Searching for Ways
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