If they claim their Social Security benefits at 65, Social Security will pay an annual total of $24,000. Eighty-five percent of that will be taxable. They’ll need to withdraw $50,777 from their retirement account and pay $4,777 in income taxes to total $70,000 after taxes are paid.

Now, consider what happens if they wait until age 70, when their Social Security benefit rises to $34,000 a year. Now they withdraw just $38,820 from their IRA and, because this reduces their combined income, only 47% of their Social Security benefit is taxable. The tax bill drops to $2,820 for savings of $1,957.

To further reduce taxes, taxpayers can contribute to Roth IRAs and Roth 401(k)s before taking Social Security. These accounts allow tax-free withdrawals. Taxpayers can also withdraw more from traditional IRAs before claiming benefits. This spreads out the tax impact over more years.

Consider matching with a financial advisor if you need help orchestrating your retirement income and taxes.

You may be able to avoid paying federal income taxes on all or a part of your Social Security benefits using these popular strategies, but they won’t necessarily allow all people in all situations to avoid all taxes. For example, where you live is a factor. Some states offer deductions or exemptions on Social Security income, but others fully tax benefits.

One significant potential drawback that could apply no matter where you live is that converting too much pre-tax savings to a Roth IRA could push you into a higher tax bracket now. This could negate long-term tax savings on Social Security benefits.

Furthermore, examples like the one above only work if the retired couple has sufficient financial means to delay taking Social Security benefits until age 70.

Besides Roth IRA conversions and delaying Social Security, other techniques can lower your tax burden:

• Withdraw more from taxable investment accounts such as traditional IRA and 401(k) plans before claiming Social Security. This spreads the tax impact over more years.

• If you have a traditional 401(k), take distributions before taking Social Security. You’ll pay taxes on the 401(k) money either way.

• Contribute to a health savings account (HSA). HSA distributions don’t count as income for determining Social Security taxes.

• If married, have the higher-earning spouse claim Social Security benefits first to reduce household taxable income.

• Move from high-tax states to low- or no-tax states. Some states don’t tax Social Security benefits at all.

• Consider speaking with a financial advisor who can offer professional, fiduciary advice.

Social Security benefits are taxed, but they have some special tax benefits that allow retirees to reduce their overall tax burden using some popular techniques. Strategic moves like Roth IRA conversions and delaying Social Security can significantly reduce your tax burden in retirement. These techniques may require making upfront payments of taxes before retirement. And states tax Social Security in a variety of ways, some of which may not be reduced by these moves.

• Before making any major financial decisions, consider working with a financial advisor who can evaluate your specific situation. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

• Estimate how much you’ll get from Social Security in the future using SmartAsset’s Social Security Calculator.

• Keep an emergency fund on hand in case you run into unexpected expenses. An emergency fund should be liquid — in an account that isn’t at risk of significant fluctuation like the stock market. The tradeoff is that the value of liquid cash can be eroded by inflation. But a high-interest account allows you to earn compound interest. Compare savings accounts from these banks.

• Are you a financial advisor looking to grow your business? SmartAsset AMP helps advisors connect with leads and offers marketing automation solutions so you can spend more time making conversions. Learn more about SmartAsset AMP.

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