Don't Let the IRS Take Your
Social Security Windfall.
The WEP/GPO repeal means more money in your pocket—but it also means a higher "Combined Income" in the eyes of the IRS. Many Massachusetts retirees will see up to 85% of their new benefits become taxable.
"The Stealth Tax Shift"
Under current IRS rules, if your income exceeds certain thresholds, your Social Security benefits are no longer "tax-free." By receiving the benefits you earned, you might inadvertently push yourself into a higher tax bracket.
The SMART Plan Reflector
Massachusetts state and local employees have a unique weapon: the Section 457(b) SMART Plan. Unlike a 401(k), the SMART plan has higher catch-up limits and allows you to "defer" your SS windfall directly into a pre-tax account.
IRS Form 1040-SR
Planning for the senior-specific tax return.
Bracket Creep
Avoiding the 22% and 24% tax cliffs.
Strategic Shield
"Our Tax Bomb Defuser is designed to help you keep more of your hard-earned money. By aligning your pension options with Social Security windfalls, we minimize your lifetime tax liability."
Income Snapshot
To calculate your "Tax Bomb" risk, we need to see your projected 2026 income levels.
Tip: Use the SSFA Auditor tool first to find your new annual SS total.
IRS COMPLIANCE: Calculations follow the Social Security base threshold rules (IRS Publication 915). Estimates assume standard deductions and basic 2026 marginal tax brackets. 457(b) limits based on 2026 IRS Catch-Up Provision for employees age 50+.
DISCLAIMER: This is a planning tool, not professional tax advice. Consult a qualified CPA regarding IRS Form 1040-SR and specific Massachusetts state tax exemptions for public pensions.