Understanding Your Retirement Security

International Association of Fire Fighters

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Local 416 – Indianapolis District

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Always on the frontline.

By fire fighters, for fire fighters.

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Sources of Your Retirement Security

• Your Pension
• Deferred Retirement Option Plan (DROP)
• Deferred Compensation Plan – 457(b)
• IPFF Health and Wellness Trust
• Retiree Health Insurance (formerly paid by RHIF)
• Medicare Supplements (formerly paid by Medicare Trust)
• Post Employment Health Plan (PEHP)
• Health Savings Account (HSA)
• Healthcare Enhancement for Local Public Safety Officers (HELPS) Act
• Medicare
• Social Security

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Your Pension

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1977 Police Officers’ and Firefighters’ Pension & Disability Fund

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Full-time, fully-paid firefighters hired after April 30, 1977

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1977 Police Officers' and Firefighters' Pension & Disability Fund

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• The 1977 Fund was established to pay pension, disability, and survivor benefits to eligible public safety officers and their survivors.

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• The Fund consists of member and employer contributions based on percentage of “base salary/pension base”. (employer percentage adjusted annually by INPRS actuaries).

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• These amounts are used to make benefit payments to Fund members and their survivors as specified by Indiana statutes.

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1977 Police Officers' and Firefighters' Pension & Disability Fund

As a member of the 1977 Fund, you are eligible for full retirement benefits if you:

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• Have at least 20 years of creditable service in the 1977 Fund;
• Are at least 52 years of age; and
• Have retired from service.

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1977 Police Officers’ and Firefighters’ Pension & Disability Fund

Calculating Your Pension

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• For 20 years of service, you will receive a monthly benefit equal to 52% of the base salary in the year you retired.

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• If you have accumulated more than 20 years of service, you will receive an additional 1% of base salary for each 6 months of active service over 20 years, up to a maximum of 12 additional years (or a maximum additional 24% of base salary).

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• For 32 years of service, you will receive a monthly benefit equal to 76% of the base salary in the year you retired.

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1977 Police Officers’ and Firefighters’ Pension & Disability Fund

Survivors/Beneficiaries of Active Members and Retirees

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• A member may designate one or more beneficiaries to receive in a lump sum the fund member’s contributions plus interest if the fund member dies while an active firefighter with no dependents.
• Your heirs or estate are entitled to receive a one-time Lump Sum Death Benefit of $12,000 upon your death.
• The following survivor benefits will be paid:
• Your surviving spouse is entitled to a monthly benefit equal to 70% of your monthly retirement benefit payable for the spouse’s lifetime. If you are an active member, your retirement benefit will be calculated as though you were receiving retirement benefits at age 52 with 20 years of service. If you have more than 20 years of service, your benefit will be increased by 1% for each six months of additional service.
• Your spouse may remarry without the risk of losing the benefit.

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1977 Police Officers’ and Firefighters’ Pension & Disability Fund

Survivors of Active Members and Retirees

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Each of your surviving children are entitled to a monthly benefit equal to 20% of your monthly retirement benefit until the child reaches the age of 18 or until the age of 23 if the child is enrolled in and regularly attending a secondary school or is a full-time student at an accredited college or university. Your retirement benefit will be calculated as though you were receiving retirement benefits at age 52 with 20 years of service. If you have more than 20 years of service, your benefit will be increased by 1% for each six months of additional service.

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1977 Police Officers’ and Firefighters’ Pension & Disability Fund

Cost of Living Adjustments

After you retire, your annual pension increases have nothing to do with the IFD contract.

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Each year the PERF Board determines if there has been a change in the Consumer Price Index. Beginning on July 1 of the year after your benefits start, monthly retirement benefits for members and your survivors may be increased by the percentage change in the Consumer Price Index, but not by more than 3%.

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Pension Considerations

Pros

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• Income for life
• Disability Benefit (not just for regular retirement)
• Spousal/Adult Dependent Child Benefit for life
• Dependent Child Benefit
• Annual Cost of Living Adjustment (COLA) during retirement
• Fantastic foundation for dignified retirement
• Actuarially funded and managed

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Things to think about

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• Your Benefit is only 52-76% of Pension Base (may not cover all needs/expenses in retirement)
• Spousal Benefit only 70% of your benefit (may not cover all needs/expenses in retirement)
• Generally, children age out (18-23)
• When you die, if you have no spouse/eligible dependents, benefit is not transferable nor inheritable

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1977 Police Officers’ and Firefighters’ Pension & Disability Fund

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Historical Cost of Living Adjustments (COLAs)

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1977 Police Officers' and Firefighters' Pension & Disability Fund

• All benefits paid by the 1977 Fund are calculated according to the “base salary” or “pension base”
• The IFD pension base is equal to the salary of a first-class firefighter plus all longevity increases for twenty-five years of service.
• Employer contributions to the Fund are 20.3% of the Base Salary.
• Member contributions to the Fund are 6% of the Base Salary.

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2025

1^st Class FF $87,931

+25 Yr Longevity +$10,648 Pension Base $98,579

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Deferred Retirement Option Plan (DROP)

• The Deferred Retirement Option Plan (DROP) is an optional form of benefit, which allows you to continue to work and earn a salary while accumulating a DROP benefit.
• When you enter the DROP, a “DROP frozen benefit” will be calculated. This is equal to your monthly retirement benefit based on your accrued service and base salary as of the date you enter the DROP.
• Upon retirement, you are eligible to receive a lump sum equal to the amount of your DROP frozen benefit times the number of months you were in the DROP.

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Deferred Retirement Option Plan (DROP)

• You may elect to receive this amount in three annual installments, instead of in a single lump sum. In addition, you will receive a monthly retirement benefit equal to your DROP frozen benefit. Cost of living adjustments will not apply to the frozen monthly benefit while in the DROP.
• The cost-of-living adjustments will begin to be applied to the frozen monthly benefit, however, in the year after the year in which you retire.
• If you elected to participate in the DROP, you may, upon retirement, elect to forego DROP benefits, and instead receive monthly retirement benefits calculated as if you never elected to participate in the DROP. These benefits would be based on your accrued service and base salary as of the date you retire.

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DROP Considerations

Pros

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• Up front Pension Payment available for use in early years of retirement when expenses are usually higher
• May use to make up income shortfall in benefit percentage for you and your spouse
• Investable
• Inheritable (balance remains after your death)

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Things to Think About

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• Depending on what year of labor contract and length of DROP, you may not know the raise(s) that you are forgoing (you must make assumptions)
• If you live long enough, you may eventually make less money over your lifetime.
• Investments may lose money

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DROP vs. Regular Retirement (Example)

Pension Base 20 yr.(52%) 32 yr.(76%)

• 2024 $88,730 $46,140 $67,435
• 2025 $98,579 $51,261 $74,920
• 2026 $101,525 $52,793 $77,159
• 2027 $105,587 $54,905 $80,246
• 2028 $109,817 $57,104 $83,460

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Example:

• Entered 60 month DROP in 2024 vs. regular retirement in 2028.
• 60 month DROP at 52% of 2024 Base = $230,700 vs. 62% of 2028 Base = $21,946 more per year in regular retirement (10.5 years to break even).
• 60 month DROP at 76% = $337,175 vs. $16,025 more per year in regular retirement (21 years to break even).

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457(b) Deferred Compensation Plan

• Created in 1978, the name refers to section 457(b) in the Internal Revenue Code that governs the plan.

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• Tax advantaged retirement plan for government employers. The City of Indianapolis provides the plan, and the employees defer compensation into it on a pre-tax or after-tax (Roth) basis.

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• Members set aside money for retirement through a salary deferral arrangement with the City. Under this arrangement, the member takes a reduction in salary. The money reduced is directed into an individual investment company account.

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457(b) Deferred Compensation Plan

Traditional 457(b)

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• Employees make pre-tax contributions through salary reduction/deferral.
• Taxable income compensation for federal and state income tax purposes is reduced. Those contributions do not reduce wages for the purpose of determining FICA taxes.
• Investment growth is tax-free.
• Taxes paid at normal tax rate at time of withdrawal at retirement or upon termination of employment.
• The 457(b) plan is not subject to the age 59 ½ withdrawal rule. This means there is no 10% penalty for early withdrawal at retirement or upon termination of employment.
• Generally, withdrawals must begin at age 73.

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457(b) Deferred Compensation Plan

Roth 457(b)

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• The Internal Revenue Code was amended in 2010 to include Roth accounts.

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• Employees make after-tax contributions from paycheck.

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• Investment growth is tax-free.

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• Withdrawals are tax-free (subject to five-year rule and 59 ½ rule).
• First contribution must have been made at least five years prior to withdrawal (five-year rule).
• Early withdrawals are subject to ordinary income tax (59 ½ rule).
• Withdrawals after age 59 ½ are tax-free (if account/contribution is over five years old).

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• No required minimum distributions.

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• Tax-free inheritance to beneficiary(ies) for ten years.

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457(b) Considerations

Pros

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• Matching contributions
• Tax Advantaged
• May be used to make up/supplement retirement income shortfall
• Investable
• Inheritable

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Things to Think About

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• Reduced income during working lifetime
• Returns are not guaranteed
• Investments may lose money
• 59½ and five-year rule for Roth (especially if hired young)

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457(b) Deferred Compensation Plan

• IFD members have a choice of two investment companies:
• Voya (formerly AUL)
• Nationwide Retirement Solutions
• Core investment options
• Target Date/Asset Allocation Funds
• Large Cap, Mid Cap, Bond Funds, International Funds
• Short-term and Fixed Investments
• Fixed Index Annuities
• Pro Account (actively managed)
• Schwab Personal Choice Retirement Account (PCRA)
• Similar to a brokerage account
• Allows investment to be made in:
• Stocks listed on major exchanges, including over-the-counter (OTC) issues
• Exchange-Traded Funds (ETFs)
• Fixed Income Investments
• Mutual Funds

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457(b) Deferred Compensation Plan

• IFD members receive matching contributions
• City contributes $0.25 per $1.00 member contribution
• In 2025, City’s match is limited to a maximum of $79.50 per pay ($1,908/year).
• For 2025, you may contribute up to $23,500 (including match).

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• Catch-up Contributions:
• If you are age 50 or older in year 2025, you may contribute an additional $7,500 above the elective deferral limit of $23,500 for a total $31,000.
• If you are age 60-63 in 2025, you may contribute an additional $11,250 above the elective deferral limit of $23,500 for a total of $34,750.
• For 3 years prior to the normal retirement age to contribute up to additional $23,500 each year for a total of $47,000 (double the normal limit).

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IPFF Health and Wellness Trust

• In 2024, Local 416 recharacterized the Medicare Supplement Trust and re-named the trust the IPFF Health and Wellness Trust.

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• Effective January 1, 2025, the IPFF Health and Wellness Trust includes Health, Dental, and Vision Insurance for Active employees and Retirees.

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• The Trust also subsidizes select Medicare Supplement Plans for Medicare eligible retired members.

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Retiree Health Insurance

• The Retiree Health Insurance Fund (RHIF) was established by Local 416 in 1999 to subsidize the health insurance premiums for qualified IFD retirees between age 52 and 65 years old who elect to continue in the City-sponsored health insurance program.

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• The RHIF ceased to exist on December 31, 2024.

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• Effective January 1, 2025, Retiree Health Insurance subsidies are the responsibility of the IPFF Health and Wellness Trust.

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Retiree Health Insurance

• Retiree Health Insurance subsidies are funded by contributions from the City and active members each month.
• Active firefighters contribute $67.42 per month ($51.10 per month added to health insurance premium and $16.32 per month reduced from $400 annual commissary fund).
• The City contributes $50 per month per active member.

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Retiree Health Insurance Considerations

Pros

• Helps member afford to retire.
• Covers premium for single or family insurance coverage

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Things to Think About

• Coverage only between 52-65 years of age
• Only pays 49% of Premiums (member still responsible for remaining 51%)
• Only if you remain on the Insurance offered by the Local
• Dental and Vision premiums not subsidized
• Benefit not inheritable (surviving spouse/dependents not eligible after your death)

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Retiree Health Insurance

• Currently, the IPFF Health and Wellness Trust pays 49% of the eligible retiree’s health insurance premiums (does not cover dental or vision premiums).

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• Additionally, the IPFF Health and Wellness Trust pays contribution to the eligible retiree’s HSA.

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• Contributions for 2025:
• $375 single
• $750 family

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Post Employment Health Plan (PEHP)

The Post Employment Health Plan (PEHP) is a Voluntary Employee Beneficiary Association (VEBA) governed by section 501(c)(9) of the Internal Revenue Code.

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Provides members with TAX-FREE contributions, investment earnings, and reimbursements of qualified health care expenses (as defined by section 213(d) of the Internal Revenue Code) upon separation of service or retirement (regardless of age, years of service, or insurance provider).

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Post Employment Health Plan (PEHP)

• Individual accounts are established for each participant in the PEHP.

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• PEHP accounts may be used for:

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• Reimbursement for qualified premium expenses (health, dental, vision, Medicare Part-B, Medicare supplements, long-term care).
• Reimbursement for qualified out of pocket medical expenses (prescription drugs, eyeglasses, hearing aids, and co-pays).

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Post Employment Health Plan (PEHP)

Sources of Employer Contributions to PEHP:

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• Upon separation, 100% of the cash value of all unused vacation days shall be contributed to your PEHP account.

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• Annually, all unused accrued vacation time in excess of 312 hours, up to 96 hours, shall be contributed to your PEHP account.

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• Annually, the City contributes $250 to each member’s PEHP account.

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Post Employment Health Plan (PEHP)

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• Contributions are invested and earnings accumulate TAX-FREE.
• Upon termination or retirement, members and their dependents are eligible for TAX-FREE reimbursements of qualified health care expenses up to their account balances.
• Members have control over their account to self-direct their investment account to meet their own objectives.
• 30 Investment Options Available
• 14 Asset Allocation and Target Date Funds
• 16 Stand-alone Funds Including a Fixed Account

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Post Employment Health Plan (PEHP)

• The money in your PEHP account can be used for any qualified dependent that you are eligible to deduct from federal income taxes (as defined by section of 152(a) of the Internal Revenue Code).

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• If you die, your PEHP account balance is transferred to spouse or qualified dependents to pay for their qualified insurance premiums/medical expenses.

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• If, upon your death, you have no dependents, your PEHP account balance is divided equally among all active members of IFD with a current PEHP account balance.

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PEHP Considerations

Pros

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• May be used to make up the 51% of premiums that RHIF does not cover
• Flexible
• Premiums (Health, Dental, Vision, Medicare, Medicare Supplements, and LTC)
• Out of Pocket and Co-pays
• No age restrictions on when you can use benefit
• Not limited to IPFF insurance options
• Investable
• Inheritable (with exceptions)
• Tax-free (never taxed)

Things to Think About

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• Benefit only inheritable for “qualified dependents”
• If you die with no “qualified dependent”, account balance is not inheritable to your Estate (money is divided among Trust members)
• Returns are not guaranteed
• Investments may lose money

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Health Savings Account (HSA)

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• All High Deductible Health Plans (HDHP) offered by the Local are associated with a Health Savings Account (HSA).

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• Contributions to your HSA can be made by you, the City, or both.

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• Your contributions are TAX-FREE (you can deduct the contributions, even if you do not itemize deductions).

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• Your earnings through investment are TAX-FREE; and,

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• Your withdrawals for qualified medical expenses are TAX-FREE.

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• Contributions to the account must stop once you are enrolled in Medicare. However, you can keep the money in your account and use it pay for medical expenses TAX-FREE.

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Health Savings Account (HSA)

• You can use the money in the account to pay for medical expenses of yourself, your spouse, or your dependent children. You can pay for expenses of your spouse and dependent children even if they are not covered by your HDHP. Any amounts used for purposes other than to pay for “qualified medical expenses” are taxable as income and subject to an additional 10% tax penalty.

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• After you turn age 65, the 10% additional tax penalty no longer applies. If you become disabled and/or enroll in Medicare, the account can be used for other purposes without paying the additional 10% penalty.

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Health Savings Account (HSA)

• You decide:
• How much money to put into your account
• Whether to save the account for future expenses or pay current medical expenses
• Which medical expenses to pay from the account
• How the money in the account is invested
• You can use the funds in your account to pay for current medical expenses, including expenses that your insurance may not cover, or save the money in your account for future needs.
• There is no “use it or lose it” rule.
• All unspent money carries forward year to year.

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Health Savings Account (HSA)

If you die, your spouse becomes the owner of the account, your spouse can use it as if it were his/her own HSA. If you are not married, the account will no longer be treated as an HSA upon your death. The account will pass to your beneficiary(ies) or become part of your estate (and may be subject to any applicable taxes).

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HSA Considerations

Pros

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• Tax-free (contributions, earnings, and withdrawals) for qualified medical expenses
• Flexible (you decide how much to contribute and when/which expenses to reimburse)
• No “use it or lose it”
• Investable
• Inheritable

Things to Think About

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• You may owe taxes (and possibly penalties) if you use it for “non-qualified” expenses
• Generally, may not be used for premiums (there are some exceptions allowed by IRS)
• Investments may lose money

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Health Savings Account (HSA)

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• City contributions to HSA:
• $1,250 single
• $2,500 family
• Family plans includes Employee plus spouse and Employee plus child(ren).
• Annually, members may turn in up to 2 vacation days and contribute the cash value to their HSA. Members with 312 hours in vacation bank may contribute up to an additional 48 hours (up to 96 total).
• Total contribution limit:
• $4,300 (2025)
• $8,550 (2025)
• Individuals age 55 and older can also make additional “catch-up” contributions of up to $1,000.

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Healthcare Enhancement for Local Public Safety Officers (HELPS)

• Enacted as part of the Pension Protection Act of 2006
• Found in Internal Revenue Code 402(I)
• Annually, retirees can use up to $3,000 TAX-FREE to pay for health insurance or long-term care insurance premiums.
• The funds come in the form of direct TAX-FREE distributions from qualified pension or retirement plans.
• Funds that do not come from direct distributions from qualified pension or retirement plans may still qualify as TAX-FREE.
• Section 328 of the SECURE Act 2.0, now Division T of Public Law 117-328, modified the direct payment requirement under HELPS by making it optional and created an alternative to the direct payment method.
• The retiree can now make the premium payment to the provider and remain eligible for the tax exclusion. This change is effective for distributions made after the date of enactment of the SECURE Act 2.0, which was December 29, 2022.

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Healthcare Enhancement for Local Public Safety Officers (HELPS)

• The funds can cover insurance for the retiree, spouse, or dependents.
• When the retiree dies, the spouse is not eligible for the benefit.

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Medicare

Medicare is health insurance for people 65 or older.

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Part A covers inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care.

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• “Premium Free” if you paid Medicare taxes for over 40 quarters throughout your working career.

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Part B (Medical Insurance) covers certain doctors' services, outpatient care, medical supplies, and preventive services.

• Monthly premium for each you and spouse
• Out of Pocket Costs (Deductible and Co-pays)

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Medicare

Part C (Medicare Advantage Plan)

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Medicare Advantage Plans are another way to get your Medicare Part A and Part B coverage. Medicare Advantage Plans, sometimes called “Part C” or “MA Plans,” are offered by Medicare-approved private companies that must follow rules set by Medicare. Most Medicare Advantage Plans include drug coverage (Part D).

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• Premium
• Varies between policies and companies (as low as $0).
• In many cases, you’ll need to use health care providers who participate in the plan’s network and service area for the lowest costs.
• Out of Pocket Costs:
• These plans set a limit on what you’ll have to pay out-of-pocket each year for covered services, to help protect you from unexpected costs.

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Medicare

Part D (Prescription Drug Plan)

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Medicare drug coverage is optional and is offered to everyone with Medicare. If you decide not to get it when you’re first eligible, and you don’t have other creditable prescription drug coverage (like drug coverage from an employer or union), you’ll likely pay a late enrollment penalty if you join a plan later. Generally, you’ll pay this penalty for as long as you have Medicare drug coverage. To get Medicare drug coverage, you must join a Medicare-approved plan that offers drug coverage.

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• Premium - Each plan can vary in cost and specific drugs covered. 
• Out of Pocket Costs.

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Medicare

Parts F, G, N (Medicare Supplements/Medigap) Original Medicare pays for much, but not all, of the cost for covered health care services and supplies. A Medicare Supplement Insurance (Medigap) policy can help pay some of the remaining health care costs, like: (Copayments, Coinsurance, Deductibles)

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• Medigap policies supplement your Original Medicare benefits.
• You pay the private insurance company a monthly premium for your policy. You pay this monthly premium in addition to the monthly Part B premium that you pay to Medicare.
• Premiums vary by your age, where you live, and insurance company.
• A Medigap policy only covers one person. If you and your spouse both want Medigap coverage, you'll each have to buy separate policies.
• Still need Medicare Drug Coverage in addition to these plans.

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Medicare

• If you get Social Security, your Part B premium will be deducted automatically from your benefit payment.
• If you don't get benefits, you'll get a bill to pay your premiums for your Part B.

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Medicare Considerations

Pros

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• Premiums deducted from monthly Social Security payment
• PEHP can be used to reimburse Medicare Premiums and Supplement Premiums

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Things to Think About

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• Part B Premiums are income based
• Premiums are for each you and your spouse
• Medicare has limitations (supplements necessary to maintain coverage like traditional health insurance while working)
• Supplements have additional premiums
• If you haven’t earned Social Security benefit, you will be billed monthly

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Medicare

Part A

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• Out of pocket costs (In Patient Hospital):
• $1,676 deductible for each benefit period
• Days 1-60: $0 copayment for each benefit period
• Days 61-90: $419 copayment per day of each benefit period
• Days 91 and beyond: $838 copayment per each "lifetime reserve day" after day 90 for each benefit period (up to 60 days over your lifetime)
• Beyond lifetime reserve days: all costs
• Out of pocket costs (Skilled Nursing Facility):
• Days 1-20: $0 copayment for each benefit period
• Days 21-100: $209.50 copayment per day of each benefit period
• Beyond 100 days: all costs

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Medicare

Part B

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• Premium
• If you earn up to $106,000 single/$212,000 joint, the standard Part B premium amount is $185.00 per person per month (you and spouse each pay).
• Higher earners subject to the Income-Related Monthly Adjustment Amount (IRMAA) pay higher premiums ranging from $259.00 to $628.90 per person per month.

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• Out of pocket costs:
• $257 deductible.
• After your deductible is met, you typically pay 20% (with no maximum) of the Medicare-approved amount for most doctor services (including most doctor services while you're a hospital inpatient), outpatient therapy, and durable medical equipment (dme)

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IPFF Health and Wellness Trust (Medicare Supplements)

• Because the RHIF only covered retirees between the age of 52 and 65, Local 416 established a Medicare Supplemental Trust Fund in 2004.
• The Trust is a Voluntary Employee Beneficiary Association (VEBA) governed by section 501(c)(9) of the Internal Revenue Code.
• Annually, money that was under spent from the RHIF was transferred to the L416 Trust.
• In 2024, the Medicare Trust was renamed as the IPFF Health and Wellness Trust.
• As of 2025, retiree health insurance contributions will be collected monthly along with active health insurance premiums.

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IPFF Health and Wellness Trust (Medicare Portion)

• Currently, the L416 Trust reimburses the monthly premium up to $55 per month for the following Medicare Supplemental Policies:
• Mutual of Omaha Plans F and G
• Anthem Plans F and G
• AARP (United Health Care) Plan G
• AARP (United Health Care) Medicare Advantage Plan
• Anthem Medicare Advantage Plan
• Humana Medicare Advantage Plan
• IU Health Medicare Advantage Plan
• This benefit only reimburses a Medicare Supplement Policy for the retiree. The spouse does not receive any benefit.
• If the retiree dies, the L416 Trust benefit for Medicare is not transferred to the surviving spouse or children.

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IPFF Medicare Reimbursement Considerations

Pros

• Makes Medicare Supplements more affordable

Things to Think About

• Only subsidizes plans selected by IPFF Trust
• May not subsidize entire premium
• No spousal benefit

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Social Security

• You must have a minimum of 10 years of work (40 quarters) to be eligible for retirement benefits. In 2025, you receive one credit for each $1,810 of earnings, up to the maximum of four credits per year for $7,240 of earnings.

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• Depending on the year you were born, normal (or full) retirement age is between 65-67 years old.

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• You may choose to collect a reduced benefit as early as age 62.

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• Reductions in your benefit may also reduce your spouse’s benefit.

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• The following slides illustrate the impact of taking your benefits at various ages.

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Social Security

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Social Security (Primary Insured Amount – PIA formula)

Social Security benefits are based on the worker’s average monthly earnings adjusted for inflation.

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• The first $1,226 of average monthly earnings multiplied by 90%
• Earnings between $1,226 and $7,391 is multiplied by 32%
• The remainder is multiplied by 15%
• The sum of the three amounts equals the total monthly payment amount.

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Social Security

• About 40% of people who get Social Security must pay federal income taxes on their benefits. This usually happens if you have other substantial income in addition to your benefits. Substantial income includes wages, earnings from self-employment, interest, dividends, and other taxable income that must be reported on your tax return.

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• You will pay tax on your Social Security benefits based on Internal Revenue Service (IRS) rules if you:
• File a federal tax return as an "individual" and your combined income is
• Between $25,000 and $34,000, you may have to pay income tax on up to 50% of your benefits.
• More than $34,000, up to 85% of your benefits may be taxable.
• File a joint return, and you and your spouse have a combined income that is
• Between $32,000 and $44,000, you may have to pay income tax on up to 50% of your benefits.
• More than $44,000, up to 85% of your benefits may be taxable.

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Social Security Considerations

Pros

• Income for life
• Cost of Living Adjustments
• Benefits for Surviving Spouse and eligible dependents
• Medicare Part B Premiums paid from Social Security

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Things to Think About

• Reduced benefit if you take it before “full” retirement age
• Taxable

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Understanding Your Retirement Security

Questions?

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