Beneficiaries who owe money to the Social Security Administration will see lower amounts withheld from their monthly checks thanks to new policies. The agency will collect either 10% of the benefit or $10, whichever is greater. Beneficiaries can also qualify for a waiver to avoid paying back the excess benefits. These changes aim to reduce the burden on beneficiaries who have been overpaid.
When a spouse passes away, the surviving partner may face higher taxes when filing as a single filer. To minimize this "survivor's penalty," consider Roth IRA conversions, reviewing account ownership, and designating beneficiaries to defer taxes. It's crucial to plan ahead to mitigate these financial surprises, especially for older women who often bear the brunt of this tax impact after losing their spouse.
