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