We specialize in bookkeeping, payroll, income tax return preparation, and retirement planning, and serve a nationwide clientele consisting of individuals and businesses of all types and sizes (LLC, partnerships, C & S Corporations), as well as trusts and estates. As financial problem solvers, we provide practical advice and proactive solutions with personalized service. We are affordable, experienced, and friendly, and we tirelessly study and research the ever-changing world of tax law and regulation so that we can help every client realize the greatest possible savings and return on investments. Our office is conveniently located in Dover, Delaware. Please contact us today to find out more about how we can make YOUR life less taxing!Tax
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๐ช๐ต๐ฒ๐ป ๐ฑ๐ผ ๐ ๐ต๐ฎ๐๐ฒ ๐๐ผ ๐๐๐ฎ๐ฟ๐ ๐๐ฎ๐ธ๐ถ๐ป๐ด ๐บ๐ผ๐ป๐ฒ๐ ๐ผ๐๐ ๐ผ๐ณ ๐บ๐ ๐๐ฅ๐?
Under current SECURE 2.0 laws, you must start taking Required Minimum Distributions (RMDs) at either age 73 (if born between 1951 and 1959) or 75 (if born in 1960 or later).
The IRS lets you delay your first distribution until April 1st of the following year.
But doing this forces your first two RMDs into the same calendar year, creating an artificial income spike that can push you into a higher tax bracket.
Unless you have a specific reason to delay, your next move would be to take that first distribution by December 31st of your initial eligibility year.
Don't let a simple timing error give your hard-earned savings right back to the government at the finish line.
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๐๐ฎ๐ป ๐ ๐ฐ๐น๐ฎ๐ถ๐บ ๐ฆ๐ผ๐ฐ๐ถ๐ฎ๐น ๐ฆ๐ฒ๐ฐ๐๐ฟ๐ถ๐๐ ๐ฒ๐ฎ๐ฟ๐น๐ ๐ฎ๐ ๐ฎ๐ด๐ฒ ๐ฒ๐ฎ?
You can, but doing so triggers a permanent monthly payout reduction of up to 30%.
Additionally, filing early changes your tax profile in two main ways:
โข Taxable Benefits: If your provisional income crosses $34,000 as an individual (or $44,000 for married couples), the IRS can tax up to 85% of your benefits. Having a pension, part-time wages, or traditional retirement accounts can easily push you over this threshold.
โข The Earnings Limit: If you keep working or consulting after claiming, your 2026 annual earnings are capped at $24,480. For every $2 you earn above this amount, the government claws back $1 of your benefits.
If you plan to start your benefits at 62, avoiding a surprise tax bill means watching your income sources closely to protect your check.
Depending on your situation, drawing from cash savings or Roth accounts first keeps your Adjusted Gross Income down, while tracking your part-time hours keeps you under the earnings limit.
DM us if you want to look at your other income streams before you lock in your Social Security filing age.
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If an unexpected $5,000 landed in your bank account tomorrow, where would that money go?
๐ฎ. ๐๐ฒ๐๐๐ฟ๐ผ๐๐ถ๐ป๐ด ๐ฑ๐ฒ๐ฏ๐: Knocking out a nagging credit card bill or back taxes.
๐ฏ. ๐๐๐ถ๐น๐ฑ๐ถ๐ป๐ด ๐๐ผ๐๐ฟ ๐ฏ๐๐๐ถ๐ป๐ฒ๐๐: Putting it back into your business tools, tech, or growth.
๐ฐ. ๐๐ฟ๐ฒ๐ฎ๐๐ถ๐ป๐ด ๐ฎ ๐๐ฎ๐ณ๐ฒ๐๐ ๐ป๐ฒ๐: Stashing it away so you can finally breathe easier.
๐ฑ. ๐ฅ๐ฒ๐๐ฎ๐ฟ๐ฑ๐ถ๐ป๐ด ๐๐ผ๐๐ฟ๐๐ฒ๐น๐ณ: Funding that personal project or trip youโve been putting off.
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First State CPAs & Associates |
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18 S. State St, Dover, DE 19901 |
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| (302) 736-6657 | |
| Business Hours | |
| January 1st January 31st | |
| MondayโFriday: | 8amโ5pm |
| Saturday & Sunday: | closed |
| February 1st April 15th | |
| MondayโThursday: | 8amโ6pm |
| Friday: | 8amโ5pm |
| Saturday: | By appointment |
| Sunday: | closed |
| April 16th December 31st | |
| MondayโThursday: | 8amโ5pm |
| Friday, Saturday & Sunday: | closed |