The article discusses the trend of retirees returning to work due to financial pressures and the desire for community and purpose. However, this return can complicate their finances by reducing Social Security benefits if they earn above a set limit before full retirement age. Additionally, working can elevate tax obligations due to the taxation of Social Security benefits. Importantly, returning to work allows for contributions to retirement accounts like IRAs and 401(k)s, potentially easing the financial burden even as it complicates income sources.
Returning to work after retirement can impact your Social Security and 401(k), as it may reduce benefits and affect tax brackets.
You may face a higher tax bill since Social Security benefits are taxed as ordinary income, and a part-time job could push you into a higher tax bracket.
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