KPMG article: Tax implications of proposed Social Security reforms
Tax professionals who wait for enacted legislation before updating their planning assumptions may find themselves behind the curve.
The Board of Trustees of the Social Security and Medicare Trust Funds in June 2026 released its annual report forecasting that the Old-Age, Survivors, and Disability Insurance (OASDI) Trust Funds—the primary source of funding for Social Security retirement and survivors benefit—will exhaust their reserves in the fourth quarter of 2032, one quarter earlier than last year’s estimate. Absent congressional action, the depletion would trigger a 22% cut to scheduled benefits under current law.
Tax professionals who wait for enacted legislation before updating their planning assumptions may find themselves behind the curve.
Read an August 2026 article* prepared by KPMG LLP that focuses primarily on the tax implications of proposed Social Security reforms, while recognizing that benefit changes—such as raising the retirement age, modifying indexing or cost-of-living formulas, or means-testing benefits—remain an important part of the broader reform discussion.
*Reproduced with permission from Tax Management Memorandum. Copyright ® 2026 by Bloomberg Industry Group, Inc. (800-372-1033) http://www.bloombergindustry.com