Deferred Compensation and Early Soc Sec

[4th&Goal]

If I am receiving money from a deferred compensation plan does this income count as income and reduce my Social Security benefit if I elect to take it at age 62?

Thank you

 

[RetireeRobert]

If I am receiving money from a deferred compensation plan does this income count as income and reduce my Social Security benefit if I elect to take it at age 62?

Thank you

No. If you notice on your paystubs, when you make a deferreal of income into your deferred compensation plan, you still get SS taxed on that income the year you earned (and deferred) it.

So SS counts it as income the year you earn it, not the year you eventually withdraw it from your deferred comp plan. Hence, it does nothing to SS benefits when you are getting SS and making deferred comp withdrawals.

 

[Martha]

You also may want to read this from the SSA: Special Payments After Retirement

 

[4th&Goal]

Robert, Although I have more than enough credits for Social Security the deferred compensation is for more recent work as a government employee in a State where government workers do not participate in Social Security. Reading Martha's link (Thanks Martha) it appears my benefits would not be reduced. I appreciate your help.