You may be taxed on up to 50% of your Social Security income if your combined income is between $25,000 and $34,000 as a single taxpayer or between $32,000 and $44,000 as a married couple filing jointly. If your combined income exceeds $34,000 as a single tax filer, or $44,000 as a jointly filing married couple, then the IRS may tax up to 85% of your Social Security benefit.
Roth IRA withdrawals, since they are not taxable in retirement, don't count toward your combined income. Investing enough money in your Roth IRA to receive, say, $100,000 annually, would limit your combined income to be just half of your Social Security benefit, provided that you don't also have other sources of taxable income or nontaxable interest.
Benefits of Roth IRAs for young adults
Roth IRAs are well-suited for young adults who are early in their working careers, for a few reasons. Having a relatively low income maximizes the tax advantages of a Roth IRA. You contribute with after-tax dollars and get the tax benefits when you retire. This arrangement is advantageous because your tax bracket when you first start working is likely lower than your tax bracket later in life.
You also probably won't exceed the Roth IRA income limits yet. In 2025, you can't contribute to a Roth IRA if your modified adjusted gross income (MAGI) is more than $165,000 for a single filer or $246,000 for married taxpayers filing jointly. In 2026, the income limits are $168,000 for single filers and $252,000 for married filing jointly. The only way for a high earner to still contribute to a Roth IRA is to use a backdoor Roth IRA strategy.
Finally, the earlier you start contributing to a Roth IRA, the greater the tax advantages. You have more years to increase your earnings on a tax-deferred basis and more money to withdraw tax-free in retirement.
