Discussion:Social Security @ age 62
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Discussion Forum Index --> Tax Questions --> Social Security @ age 62
| 25 June 2007 | |
| I you receive social security @ age 62 and earn more than 13K but all the money over the 13K is pur into a 401K or a IRA do you still loose the $1 for each $2 you earn? How does the deferal affect this senerio
Neil | |
| 25 June 2007 | |
| do you still loose the $1 for each $2 you earn? YES
Does not matter what you do with the money earned. How does the deferal affect this senerio. It does not effect if you still loose the $1 for each $2 you earn | |
| 25 June 2007 | |
| When to become the full ss age, you will be able to earn as much as you want. | |
| 25 June 2007 | |
| Nshn, look at a W-2 form and notice that Federal taxable wages (after the deferral) is a separate box from Social Secuity wages. The SS dept will know what you really earn. | |
| 26 June 2007 | |
| If I participate in FSA section 125 the wages are excluded from W2 SS wages. then would they be included in the earned income calculation?
Neil | |
| 26 June 2007 | |
| As mentioned above, Social Security does not make provisions for earnings which are placed into retirement plans. Amounts placed into 125 plans are still reported on the W2 in Box 14. | |
| 3 July 2007 | |
| but by being in box 14 it is not part of SS wages in box 3 so is it included in the earned income for the SS payback if you take SS @ 62 | |
| 3 July 2007 | |
| Nshnider, in a recent post on another thread I said that accountants are often asked about dubious schemes from clients who want assurance there will be no negative ramifications from what they do. In such cases, the accountant needs to give his/her professional opinion, even if that isn't what the client wants to hear.
In this thread, 4 professionals have given you various forms of a negative answer to your ideas. If you don't think the answers above are correct, or if they simply aren't what you want to hear, about all I can further advise is to: (1) try to look it up yourself, or (2)pay a professional to research it for you, or (3)proceed with your plan against professional advice and be prepared to accept any negative consequences which may occur. If that answer sounds snippy blame Verizon. I was on the line half the morning to them trying to straighten out phone problems, lol. | |
| 3 July 2007 | |
| But a Sec 125 plan is not a retirement plan, so perhaps Neil has something here. They are not SS credits since they are not income for any reporting....they are essentially only reimbursements under a plan and not considered income for SS or Federal....
Yes, sometimes the 125 is reported in box 14, but some idiots who don't fill out w-2's correctly do not report them at all. The information is for the employee's benefit.... Tax? Why not switch to the new I-Phone? hehehe. I sooo want one!! | |
| 3 July 2007 | |
| Sandysea, you're right that he may be on to a way to work that the SSA may not be able to detect. The problem is that I have seen no such exclusion allowed in any SS regs, so it seems that fundamental to his plan's success is that he not get caught. Ha ha, that meets my definition of a "dubious scheme." Of course, I also read somewhere that if you hold up a convenience store there's only a 15% chance you'll ever serve jail time for it, so maybe he should go for it!
As far as the I-Phone goes, I don't even know how to send a text message on the cell phone I have...lol I can't even figure out why anyone would want to send one...why not just call? So I better stick to my old clunky cell. At least I learned today (through bitter experience!) that when the Verizon automatic switchboard asks for your phone number don't give it. It will give up and transfer you to a helpful human after about 3 minutes...the human answering at that point didn't even try to transfer me back into the automated switchboard and was able to address my problems. Of course, that was after I hung up on the auto switchboard after I found I was hurling invective at it while in some sort of out-of-body combined trance/rage. As you can tell, I need a day off. | |
| 3 July 2007 | |
| HEHEHE; WHAT?????
I don't text either, but that phone is sweeeeettttt. It may even take me out to dinner!!! hehehe I just don't think that since a 125 plan is reimbursement only that it would be considered income; that is why it is not taxable for anything. So if SS is only concerned with earned income, then the 125 deferrals should not prevent him from taking the early retirement. But leave it to the Feds to find a way to tax that too...hehe | |
