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62 YO retired age 47 wants to find out about early social security with a twist
Old 03-07-2014, 12:54 PM   #1
Confused about dryer sheets
Join Date: Mar 2014
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62 YO retired age 47 wants to find out about early social security with a twist

My wife is working so that we can have health insurance (HSAs for both of us). She doesn't earn much and is 63. Her employer offers a 125 plan so that her HSA contribution and our part of our health insurance premium is paid by a payroll deduction before all taxes. Because of this her W2 income falls well below the limit of about $15200 that is used by The Social Security Administration to determine the withholding of benefits. I have been unable to find out if the W2 earnings are what is used for that determination. Her payroll stub income would place her well above the limit and would cause a substantial withhold of her benefits. Does anyone know which is used? My accountant does not know and I can find nothing relevant on fairly lengthy web searches.

If W2 reported income is the basis for the Social Security Administration's determination, this would seem to me to be a major way of reducing income and thus qualifying for Social Security benefits without the withhold. For those age 62 and above having an employee sponsored HSA payroll deduction this would seem to allow perhaps as much as $7550 more income (used to pay for HSA contribution) and still get full Social Security benefit payments.

Thank you for your consideration

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Old 03-10-2014, 10:41 AM   #2
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Call a SS office.

The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
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Old 03-10-2014, 07:43 PM   #3
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I think 2B has the best answer. If you have not worked with the SS people they are pretty good at what they do and can probably get you the correct answer. Its worth a call anyway. Don't forget that even if you get docked for too much income, you will get that back in the form of higher payments once you reach your full retirement age.
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Old 04-27-2015, 07:47 PM   #4
Confused about dryer sheets
Join Date: Apr 2015
Location: Chiloquin
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When I've gotten statements from social security administration they list my income for every year that I've worked. So, the more you make, the more you get. You can go to their website and get a report of your earnings and how much you will get for retirement.
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