In addtion to taking distributions at retirement from qualified plans such as a solo 401k plan, social security benefit distributions is also an option.
Here Are Some Key Items Regarding Social Security Benefits
1. If you qualify, you can start taking payments as early as age 62 or you can delay until as late as 70. The longer you wait the higher your monthly payment will be.
2. Monthly benefits change based on the age when you claim. If you claim early, your benefits are reduced. If you delay you can get a higher monthly benefit.
3. For each year you claim before your full retirement age (FRA), your benefit will be reduced. If you start taking Social Security at age 62, rather than waiting until your FRA, you can expect up to a 30% reduction in monthly benefits. FRA now ranges from 66 to 67, depending on your date of birth.
4. Waiting to claim your Social Security benefit will result in a higher benefit. For every year you delay past your FRA, you get an 8% increase in your benefit.
5. Delaying taking social security benefits means you may need to work longer or fund the early part of your retirement from other sources such as distributions from solo 401k plans and IRAs.
For more information on the impact of solo 401k contributions and distributions on social-security benefits, VISIT HERE.