When You Need Professional Guidance

Managing a part-time income alongside your retirement accounts requires careful maneuvering. You should consult a tax professional or a Certified Financial Planner (CFP) in the following scenarios:

• Your earnings push you into a new tax bracket: Additional income on top of your pensions, Social Security, and required minimum distributions (RMDs) can dramatically alter your tax liabilities.
• You face Medicare IRMAA surcharges: The Income-Related Monthly Adjustment Amount (IRMAA) increases your Medicare Part B and Part D premiums if your modified adjusted gross income exceeds certain thresholds. A financial professional can help you structure your work hours to stay just below these costly limits.
• You plan to start a formal small business: If your consulting or handyman work grows, you may need advice on setting up an LLC, managing business deductions, and protecting your personal retirement assets from liability.