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Avoiding Income Taxes on Social Security Benefits Through Loans

This is an interesting paper which looks at how a relatively well-off retiree can avoid paying income taxes on Social Security taxes by taking out a loan against their life insurance policy (or, presumably against other assets).

Under scenarios studied, instead of making taxable withdrawals from their 401k, a couple could obtain similar "cash flow" by borrowing against their life insurance policy (or presumably other assets).

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Not affiliated with the US Social Security Administration