Maximizing Social Security with Bend points

[dallas27]

I fired being midway between the first and second bend points. At this level SS still yields a respectable amount per month.

I calculated my marginal benefit by working an additional year. It came out to an additional $108/month (taking SS at 70) under the assumption of max income for that year. It wasn't a factor into my decision whether to continue working or not.

For me, i have the choice to pay ourselves wages or dividends. Essentially, i have the power to avoid SS tax, within reason. For me, its a factor while i am still working.


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[gauss]

For me, i have the choice to pay ourselves wages or dividends. Essentially, i have the power to avoid SS tax, within reason. For me, its a factor while i am still working.


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How long have you been doing this?

I have heard that this is one of the IRS looks for if your salary/wages are too small if you are running a small business.

-gauss

 

[dallas27]

How long have you been doing this?

I have heard that this is one of the IRS looks for if your salary/wages are too small if you are running a small business.

-gauss

Yes, they do check, and if i paid my self 0 wages they might care. I pay myself a decent, albeit low, wage our accountant suggested guidelines to stay within. We have to make this choice every year, how much to pay ourselves. This year the revenue has jumped, so the "problem" is getting larger.


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