How Women in Menopause Can Dodge the Social Security Tax Torpedo (And Keep More Money)
Hot flashes are bad enough. Finding out the government wants to tax your Social Security? That's just insulting.
INSIDE THIS ISSUE:
Why 56% of women get blindsided by Social Security taxes (and you don't have to be one of them)
The simple money moves that keep more cash in your pocket
How to use menopause expenses to actually save on taxes
THE TAX SURPRISE NOBODY WARNS YOU ABOUT
You finally claim Social Security after decades of paying in. Then April rolls around and—surprise!—you owe taxes on benefits you already earned.
Welcome to the tax torpedo. Awful name, worse reality.
Here's the deal in plain English: When your total income hits certain amounts, the government starts taxing your Social Security. Not only that, but earning just one extra dollar can make more of your benefits taxable. It's like a penalty for having money coming in.
The magic numbers? For single women, trouble starts at $25,000 total income. Hit $34,000 and up to 85% of your Social Security becomes taxable. Married couples filing together get slightly higher limits: $32,000 and $44,000.
Your "total income" includes everything: wages, retirement account withdrawals, even tax-free bond interest, plus half your Social Security. Yes, they count money you haven't even received yet.
The truly maddening part? These dollar amounts haven't changed since 1984. Back then, practically nobody paid these taxes. Today, more than half of us do. Even the 2025 tax law that gave seniors a new $6,000 deduction left these ancient limits untouched.
Here's what this looks like in real money:
Meet Sarah, 67, recently retired:
Social Security: $2,000/month ($24,000/year)
Pension: $30,000/year
Combined income: $42,000 ($30,000 + $12,000, which is half her Social Security)
Without planning: Sarah pays income tax on 85% of her Social Security benefits. That's roughly $1,400 in extra taxes every year—money that should be hers.
With smart moves: Sarah uses Roth withdrawals instead of pension income for some expenses, drops her combined income to $35,000, and cuts her Social Security taxes by more than half. She keeps an extra $700+ in her pocket annually.
That's $700 every year that could go toward hormone therapy, better sleep solutions, or just not worrying about money while your body does whatever it wants during menopause.
FIGHT BACK WITH SMART MONEY MOVES
1. Raid Your Roth Account First Think of your Roth IRA as your secret stash. Money comes out tax-free and doesn't count toward those income limits at all.
If you're 59½ or older: Pull from Roth accounts to cover living expenses before claiming Social Security
Career derailed by menopause symptoms? Use Roth money to bridge the gap until you can claim higher benefits
Pro move: Every dollar from Roth = one less dollar pushing you toward the torpedo zone
2. Play the Waiting Game (If You Can Swing It) Every year you delay Social Security until 70, your monthly check grows by about 8%. Plus, you get more time to shuffle money around.
The math: Wait from 67 to 70, and your monthly check jumps by 24%
Meanwhile, do Roth conversions when your income is temporarily lower
Set yourself up: Smaller required withdrawals later = more control over future taxes
Reality check: Only works if you have other money to live on
3. Turn Menopause Costs Into Tax Wins All those doctor visits, hormone treatments, and sleep studies draining your bank account? Make them work for you.
HSA withdrawals for medical expenses: Tax-free and invisible to Social Security calculations
Qualified expenses include: HRT, sleep studies, mental health counseling, even mileage to appointments
Double benefit: Address your health needs while staying under income limits
If you don't have an HSA: Consider opening one if you're still working
4. Get Strategic About Your 401(k) Before Social Security kicks in, consider taking some money out of traditional retirement accounts strategically.
Why this works: Lower your future required withdrawals when you're also getting Social Security
Best timing: Years 62-67, when you might be in a lower tax bracket anyway
Convert some to Roth: Pay taxes now at lower rates, enjoy tax-free income later
Bonus: Gives you more flexibility when the torpedo zone looms
The Bottom Line We've already survived decades of work, periods, pregnancies, and now perimenopause brain fog. The last thing we need is the government making retirement harder. These moves won't solve everything, but they'll keep more money where it belongs—in your pocket, not Uncle Sam's.
Forward this to every woman you know who's tired of getting financially blindsided.