Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Social Security: 7 guideline changes coming in 2018
Old 10-23-2017, 02:13 PM   #1
Full time employment: Posting here.
 
Join Date: Aug 2013
Location: North
Posts: 689
Social Security: 7 guideline changes coming in 2018

This article makes it easy to understand the changes.


https://www.usatoday.com/story/money...018/106907866/

For those not yet claiming, but paying INTO SS via 6% paycheck withdrawals, AND you earn near the maximum taxable earnings cap of now $128,700 then we all owe extra $93 to the tax man next year.
Ahh the middle class helping the rich get richer. 1 in 10 hits the max each year, but to do it for 35 is even less achievable for the underdogs.

Another interesting tidbit, the $ needed to achieve a "credit" rises by $20, or $80 for the year.
3. Wealthy Americans will owe a little bit more in 2018

The average working American is likely to be thrilled to find out that wealthier Americans will be paying a bit more into Social Security next year. In 2017, workers were required to pay a 12.4% payroll tax into Social Security on earned income between $0.01 and $127,200. This $127,200 figure is what's known as the "maximum taxable earnings cap." Next year, it'll be rising to $128,700, an increase of $1,500.
There is, however, a pretty big exception that folks should be aware of. If you're employed by someone else, the company you work for usually covers half of your Social Security responsibility (6.2%). This means most Americans typically pay 6.2% of their earned income between $0.01 and the maximum taxable earnings into the Social Security program.
__________________

__________________
AA (Stock/Bond/Cash ): 99/0/1% MIX (Small/Mid/Large): 50/25/25% BLEND(US/Foreign): 100/0%, (Value/Growth/Blend): X/X/X% REIT (Real Estate Equity): 50% of Assets

FIRE in 2031 @ 50yrs old (+/- 2yrs) w/ a hypothetical $2.5mil portfolio, 3 appreciated homes worth $1.0mil and rental income to fund my gap years until RMD. Assets will go to an inherited IRA where I plan on watching the investments grow until I die or the trust gets executed.
kgtest is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-23-2017, 02:57 PM   #2
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,269
The article title is misleading. No new guidelines, just new limits. According to the article:

1. SS beneficiaries get a 2% COLA.
2. The maximum payout increases to $2788 per month.
3. The taxable income ceiling increases by $1500 to $128,700
4. The age for full retirement benefits increases by 2 months to 66 and 4 months.
5. The income threshold for working beneficiaries rises by $10 to 17040.
6. The income threshold for disability beneficiaries rises by $10 to $1180 per month.
7. The amount needed for one work credit increases by $20 to $1320, or $5280 for a full year credit.
__________________

__________________
MichaelB is offline   Reply With Quote
Old 10-23-2017, 03:02 PM   #3
Thinks s/he gets paid by the post
ivinsfan's Avatar
 
Join Date: Feb 2007
Posts: 2,181
Quote:
Originally Posted by kgtest View Post
This article makes it easy to understand the changes.


https://www.usatoday.com/story/money...018/106907866/

For those not yet claiming, but paying INTO SS via 6% paycheck withdrawals, AND you earn near the maximum taxable earnings cap of now $128,700 then we all owe extra $93 to the tax man next year.
Ahh the middle class helping the rich get richer. 1 in 10 hits the max each year, but to do it for 35 is even less achievable for the underdogs.

Another interesting tidbit, the $ needed to achieve a "credit" rises by $20, or $80 for the year.
3. Wealthy Americans will owe a little bit more in 2018

The average working American is likely to be thrilled to find out that wealthier Americans will be paying a bit more into Social Security next year. In 2017, workers were required to pay a 12.4% payroll tax into Social Security on earned income between $0.01 and $127,200. This $127,200 figure is what's known as the "maximum taxable earnings cap." Next year, it'll be rising to $128,700, an increase of $1,500.
There is, however, a pretty big exception that folks should be aware of. If you're employed by someone else, the company you work for usually covers half of your Social Security responsibility (6.2%). This means most Americans typically pay 6.2% of their earned income between $0.01 and the maximum taxable earnings into the Social Security program.

Not to quibble with you but you realize the "other" 6.2% does comes out of your pocket in the form of lower compensation, there's no such thing as a free lunch...
__________________
ivinsfan is offline   Reply With Quote
Old 10-23-2017, 03:03 PM   #4
Full time employment: Posting here.
misanman's Avatar
 
Join Date: Apr 2008
Posts: 527
Re: #2 (The maximum payout increases to $2788 per month) - I assume that the $2788 is the maximum benefit at full retirement age as I currently draw substantially more than that having drawn a spousal benefit and postponing my claim.

I would like to know who is eligible for the increased payout? Is this for future claimers only or does it also apply to current SS recipients?
__________________
misanman is offline   Reply With Quote
Old 10-23-2017, 03:24 PM   #5
Dryer sheet wannabe
 
Join Date: Jan 2007
Posts: 24
Quote:
Originally Posted by kgtest View Post
1 in 10 hits the max each year, but to do it for 35 is even less achievable for the underdogs.
One thing I've often wondered about is what percent of Soc Sec beneficiaries actually hit the maximum benefit by paying the maximum tax for at least 35 years. Does anybody here know? Google searches have turned up nothing....
__________________
Sand Pounder
Sand Pounder is offline   Reply With Quote
Old 10-23-2017, 05:30 PM   #6
Full time employment: Posting here.
misanman's Avatar
 
Join Date: Apr 2008
Posts: 527
Quote:
One thing I've often wondered about is what percent of Soc Sec beneficiaries actually hit the maximum benefit by paying the maximum tax for at least 35 years.
I don't know the answer but I just checked my SS earnings record and it looks like I maxed it out for 37 consecutive years. Not sure if this entitles me to an increase next year or not.
__________________
misanman is offline   Reply With Quote
Old 10-23-2017, 09:53 PM   #7
Full time employment: Posting here.
 
Join Date: Aug 2013
Location: North
Posts: 689
Quote:
Originally Posted by ivinsfan View Post
Not to quibble with you but you realize the "other" 6.2% does comes out of your pocket in the form of lower compensation, there's no such thing as a free lunch...

Oh completely, robbing peter to pay paul.
__________________
AA (Stock/Bond/Cash ): 99/0/1% MIX (Small/Mid/Large): 50/25/25% BLEND(US/Foreign): 100/0%, (Value/Growth/Blend): X/X/X% REIT (Real Estate Equity): 50% of Assets

FIRE in 2031 @ 50yrs old (+/- 2yrs) w/ a hypothetical $2.5mil portfolio, 3 appreciated homes worth $1.0mil and rental income to fund my gap years until RMD. Assets will go to an inherited IRA where I plan on watching the investments grow until I die or the trust gets executed.
kgtest is offline   Reply With Quote
Old 10-24-2017, 08:07 AM   #8
Dryer sheet wannabe
 
Join Date: Jan 2007
Posts: 24
Quote:
Originally Posted by misanman View Post
I don't know the answer but I just checked my SS earnings record and it looks like I maxed it out for 37 consecutive years. Not sure if this entitles me to an increase next year or not.
Awesome! It takes a lot of work over many years to accomplish that!

If I read the article correctly, you'll be getting a raise.
__________________

__________________
Sand Pounder
Sand Pounder is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
social security changes mn54 FIRE and Money 31 11-15-2015 05:35 PM
Social Security, Medicare changes are coming with new budget law Exit 2024 FIRE and Money 1 11-13-2015 11:46 AM
Social Security "do over' rule changes hogwild FIRE and Money 1 01-13-2011 04:16 PM
Status of Social Security Changes TromboneAl FIRE and Money 22 09-11-2005 04:08 PM

 

 
All times are GMT -6. The time now is 06:42 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.