Having a financial plan for the future is the only sure way to do the things you want in life. Your financial plan can help you send your children to college, start your own business, or enjoy retirement. However, we understand that it is not always easy finding the money to fund that financial plan. Here is a potential solution.

Did you know that wages above $90,000*are exempt from Social Security tax?

For example, if you are earning $150,000, $60,000 of this annual income is above the Social Security wage base. So somewhere around mid-July, the 6.2% that you are accustomed to paying will stop. By year-end, this amounts to $3,720 of “found money.” And, since the rate for self-employed individuals is 12.4%, you could have twice as much!

How some annual incomes are affected

Pre-Tax Available Funds

Annual Income

Income Above Social Security Wage Base

Individual

$125,000

$35,000

$2,170

$150,000

$60,000

$3,720

$200,000

$110,000

$6,820

Jeff Johansen

Jeff Johansen

Founder at Lifeline Solutions
Jeff Johansen

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