According to a January 2015 Gallup poll, 80 percent of baby boomers in their 50s are in the workforce; 50 percent of boomers in their 60s are in the workforce; and 30 percent of boomers ages 67 to 68 are working.<\/p>\n Either by design or out of financial need, boomers are working longer. Not all of them, however, want or need to maintain full-time positions. One in 10 baby boomers works part-time, a statistic that may increase as employers discover the magical mix of benefits that will keep high-performing boomers contributing to their bottom lines.<\/p>\n Additionally, Gallup reports that boomers are one of the fastest growing groups of entrepreneurs, because many look for an encore career after retirement.<\/p>\n Regardless of the reason, it\u2019s important to understand how going back to work can affect retirement benefits and taxes.<\/p>\n Individuals thinking about returning to the workforce after retiring need to learn how Social Security benefits, health insurance and taxes will be affected, so they don\u2019t lose benefits or end up in a higher tax bracket. The Pennsylvania Institute of Certified Public Accountants reminds Pennsylvanians to keep the following in mind when considering employment after retirement:<\/p>\n The SSA full retirement age has been gradually increasing, but it\u2019s currently between 65 and 67 years old, depending on the year you were born (it is age 67 for everyone born in 1960 and later).<\/p>\n If you\u2019re at the year when you will reach your full retirement age, but haven\u2019t had your birthday yet, your benefits will decrease, but not by as much. Benefits will be reduced by one dollar for every three dollars you earn above the annual limit ($41,880 in 2015), until your birthday.<\/p>\n You can estimate how much your annual benefits will be reduced by using the SSA’s online Retirement Earnings Test Calculator at ssa.gov<\/a>.<\/p>\n Once you reach full retirement age, your benefits will no longer be reduced, no matter how much money you earn.<\/p>\n If you return to work after starting to receive benefits, you may be able to receive a higher benefit based on those earnings. The SSA automatically recalculates your benefit amount after the additional earnings are credited to your earnings record. Moreover, you can repay all SSA benefits collected to date with no interest, and the benefits will be reset to a higher number based on your current age and past earnings.<\/p>\n As much as 85 percent of your Social Security benefits can be taxable if your other income, including tax exempt interest plus half of your Social Security, exceeds the threshold. Thresholds are $25,000 for single or head of household, $32,000 for married filing jointly and zero for married filing separately.<\/p>\n According to Medicare\u2019s website, Medicare Part B insurance premiums range from $104.50 to $335.70 per month as adjusted gross income ranges from $85,000 (single filers or married filing single) or $170,000 (married filing jointly) to $214,000 (single filers), $129,000 (married filing single), or $428,000 (married filing jointly).<\/p>\n Some people might find themselves paying for Part A hospital insurance, which is $407 a month if they apply for Medicare before they are eligible for Social Security.<\/p>\n If you have private health insurance, carefully compare your benefits and coverage to what might be available from your new employer. Although group plans tend to be cheaper than individual policies, it might make sense to keep what you have rather than cancelling and reapplying at a later date. This is especially true if you have retiree health insurance from a former employer.<\/p>\n Working past age 70 \u00bd doesn\u2019t affect the required minimum distribution rules for traditional IRAs\u2014required minimum distributions are still required and will generally be taxed as ordinary income. There are no required minimum distribution requirements for Roth IRAs.<\/p>\n There are many variables involved in returning to work and evaluating the short\u2014and long-term impact on taxes, Social Security benefits and health care. A CPA can help you analyze your current situation and determine the best course of action with regard to your personal financial plan.<\/p>\n
\nT<\/span>he old notions about retirement have, well, retired. Rather than leaving work at age 65 and going fishing or focusing on gardening, many retirees celebrate retirement by going back to work.<\/p>\n\n
\n
\n
\n