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Social security does not count deferred as income?
Old 07-11-2016, 12:28 PM   #1
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Social security does not count deferred as income?

Am I reading this right? If I defer 75% of my income am I substantially lowering my future benefit?

Is 401(k) Money Counted As Earned Income on Social Security? | Finance - Zacks


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Old 07-11-2016, 12:31 PM   #2
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You pay fica/futa on earnings before they are deferred - k deferrals are only exempt from ordinary income when deferred

geez how old is that article? they closed that loophole over 20 years ago
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Old 07-11-2016, 12:44 PM   #3
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I ask because I receive widow caring for a child under 16 benefits that are offset by income. I recently received a larger than expected extra benefit and *assume* it's the result of my 2015 tax return. I am wondering if my large deferrals at the end of 2015 is the reason and if I should continue large deferrals in hopes of claiming the ss?


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Social security does not count deferred as income?
Old 07-11-2016, 02:09 PM   #4
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Social security does not count deferred as income?

Quote:
Originally Posted by Big_Hitter;1755086
[B
geez how old is that article[/B]? they closed that loophole over 20 years ago
geez how old is that article? they closed that loophole over 20 years ago

I was thinking the same thing. The article is undated which is a super peeve of mine but one of the resource links is a 2012 SSA FAQ.


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Old 07-11-2016, 02:37 PM   #5
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Well I called ss they show my income as earned minus deferred = substantially lower total
So perhaps the loophole was not completely closed for this particular benefit. I will believe it when I see it next year.


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Old 07-12-2016, 07:38 AM   #6
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are you talking qualified plan deferrals or nonqualified plan deferrals?
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Old 07-12-2016, 01:58 PM   #7
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Dumb question - what is the difference and how would I know?


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Old 07-12-2016, 02:11 PM   #8
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Ok duh yes it is qualified - we get an 8% match so I have done that until recently when I upped it to my over 50 catch up contribution limit (sold my house had some cash)



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