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Old 05-13-2014, 09:05 PM
 
1,158 posts, read 1,873,769 times
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Hi guys!

First time poster in this forum.

Here's my question. I looked through all the social security threads trying to find out how much you can earn while collecting SS. I also looked on the SS website, which I might add is very confusing (surprise!!).

I'm only 63 and thinking of filing for SS within the next six months. I realize that if I wait till 66 to file, I can work as much as I want and still receive the full benefit, but I really can't figure out how much I can work at 63 and still not get dinged on my benefit.

Is there a specific amount ($) you can earn or does it depend on your benefit?

Thanks for your help.
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Old 05-13-2014, 09:46 PM
 
Location: OH>IL>CO>CT
5,237 posts, read 8,409,707 times
Reputation: 7191
The SSA booklet you need to read is located at this webpage:

http://www.socialsecurity.gov/pubs/EN-05-10069.pdf

Basically it says, for instance, if you are under 66, and earn more than $15480/year (the 2014 threshold), then SS deducts $1 for every $2 you earn over the $15480 threshold. It does not depend on the amount of your benefit, except that if your benefit is low, and your wages are high, it could reduce any payment to zero. Any deduction is not lost, it is actually defered, and when you reach 66, your benefit amount is adjusted upward to account for any such deferrals.
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Old 05-14-2014, 08:30 AM
 
1,158 posts, read 1,873,769 times
Reputation: 1357
Thanks! Just the answer I was searching for!
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Old 05-15-2014, 05:47 AM
 
Location: Mount Airy, Maryland
10,463 posts, read 5,933,005 times
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This may be a stupid question but does 401(K) withdraw count as earnings?
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Old 05-15-2014, 05:59 AM
 
Location: Northern IL
241 posts, read 226,869 times
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Quote:
Originally Posted by DaveinMtAiry View Post
This may be a stupid question but does 401(K) withdraw count as earnings?
Not a stupid question.

No distributions from a retirement plan is unearned income that is entered on the 1040 tax form page 1 line 16a and 16b.
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Old 05-15-2014, 10:39 AM
 
Location: OH>IL>CO>CT
5,237 posts, read 8,409,707 times
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Quote:
Originally Posted by DaveinMtAiry View Post
This may be a stupid question but does 401(K) withdraw count as earnings?
No, only gross wages, or net self-employed income, is counted. However, any pre-tax 401K contributions are counted.

See page 5 of http://www.socialsecurity.gov/pubs/EN-05-10069.pdf
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Old 05-15-2014, 01:18 PM
 
Location: Mount Airy, Maryland
10,463 posts, read 5,933,005 times
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Quote:
Originally Posted by reed303 View Post
No, only gross wages, or net self-employed income, is counted. However, any pre-tax 401K contributions are counted.

See page 5 of http://www.socialsecurity.gov/pubs/EN-05-10069.pdf
Thanks but not sure I understand what they mean. So if I have invested $100,000 of pre-tax income and over time the portfolio has grown to $300,000 does that mean 33% of my withdrawl counts as income?
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Old 05-15-2014, 03:03 PM
 
Location: OH>IL>CO>CT
5,237 posts, read 8,409,707 times
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No, no withdrawal (or account balance) counts as "gross wages". Only if you are still making current payroll pre-tax contributions to an active 401K do they count as gross wages in that year. (Maybe you would still be contributing in order to take advantage of an employer match)
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Old 05-15-2014, 04:56 PM
 
Location: Las Vegas
13,890 posts, read 25,331,777 times
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Quote:
Originally Posted by reed303 View Post
The SSA booklet you need to read is located at this webpage:

http://www.socialsecurity.gov/pubs/EN-05-10069.pdf

Basically it says, for instance, if you are under 66, and earn more than $15480/year (the 2014 threshold), then SS deducts $1 for every $2 you earn over the $15480 threshold. It does not depend on the amount of your benefit, except that if your benefit is low, and your wages are high, it could reduce any payment to zero. Any deduction is not lost, it is actually defered, and when you reach 66, your benefit amount is adjusted upward to account for any such deferrals.

You have made me really happy! I have been going back and forth about applying for H's survivor benefits partly because I have a pension and some royalty income. Well, turns out they don't count and I can get the full benefit. What does hurt you is money you go to work and earn. So as long as I don't make more than 15K actually working, I get the full benefit!
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Old 05-15-2014, 05:31 PM
 
Location: Palm Coast
212 posts, read 723,507 times
Reputation: 119
When collecting SS at 62 and working part time, I understand the max you can make is the 15,480. Does that amount have to be divided up evenly per month or can you make 2k one mos, 1500 another and so on as long as you don't go over the max? We heard it had to be divided up evenly. Thanks.
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