Here it goes:

**Given:**tax brackets:

10% <$9,700

12% <$39,475

22% <84,200

24% <160725

Standard Deduction $12,000

SSA Benefit $25,000/year

**Problem:**I want $60,000 yearly income but do so tax efficiently. How do I make $60K but taxed at 12% rate?

**Method:**Take TDA funds until reach limit of 12% tax rate. With standard deduction, can make $39,500 + $12,000 or $51,475 and still have an AGI within 12% tax rate.

Withdraw funds from TDA account to reach $51,475– SSA Benefits. Therefore, can take $51,475 - $25,000 or withdraw $26,475 from TDA savings. Will need to make the rest using brokerage or TEA money. Will need $60,000 - $51,475 or $8,525 from taxable/Roth account.

How will SSA benefits be taxed?

If taxable income is < $34,000, then only half SSA benefits are taxed. Therefore, in my above scenario (pretending the SSA limit is $39,500 to keep the math simple), I only have $12,500 SSA benefits taxed. So reported income is $39,500 - $12,000 or $27,000, so technically I can take another $12,500 out of my TDA without incurring additional taxes.

So, with my reported income level or $39,450, I am really making:

SSA Benefit $25,000

TDA Withdrawal ($26,475 + 12,500) or $38,475

To equal $63, 475. So, I have essentially made my desired $60,000 income before I actually touch my taxable account. I am therefore free to tap these accounts for extras that I didn't include in my $60,000 income.

Does real life work this way, or am I making an incorrect assumption?

Thanks,

Ben