What to do with social security income?
My wife and I are both 61. I work as a school teacher and pay into social security as well as 403B/457 retirement plans and will receive a pension of about 35% of my salary.
My wife runs our business which I own 100%. Recently we started paying me her salary (about the same as a teacher salary) to maximize my social security benefit and it has only a small change in hers. We plan on taking her social security at 62 and investing it.
Should the money from social security be put into a traditional retirement account to avoid current taxes? Is it even possible to avoid taxes on social security? Would a Roth account benefit us? Our combined gross salaries are about $160,000 but our exemptions, business expenses and pretax savings bring that number down to about $75,000.