What would you like to do?

Is 401K savings considered earned income while collecting Social Security?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

No. Distributions from a 401k are unearned income for Social Security purposes, and do not affect the benefit amount you receive under regular SS retirement or SSDI (disability) programs. Only SSI (Supplemental Security Income, a form of welfare) payments are means-tested and offset by either earned or unearned income.
23 people found this useful
Thanks for the feedback!
Follow

What makes the Wheel of Fate so "dreaded"?

View Full Interview

Does social security count in income for earned income?

No, earned income includes wages, salaries, tips, other taxable employee compensation, and net earnings from self-employment. Earned income also includes strike benefits and a

Does non earned income affect Social Security compensation?

Unearned income would NOT count as part of the income for the earnings test amount on your social security benefits amount. Unearned income could cause some of your SSB to bec

Does social security recognize an annuity as earned income?

Only if your taking an income stream from it. A way around this would be to move the funds into a single premium whole life product and borrow from the life insurance policy.
Is Social Security earned income?

Is Social Security earned income?

No. The Social Security benefits would be a part of all of your other Unearned Income for the year. You are not working for the benefits that are paid to you during each year.

Does Social Security count 401k as income?

My CPA, has advised me, that you can take funds out of your 401k/IRA without any penalty or it being counted against your income. Bottom line, it is not counted as earned inco
How much income can you earn in 2010 and collect Social Security at age 62?

How much income can you earn in 2010 and collect Social Security at age 62?

If you are 62 years old in 2010, you will reach full retirement age at 66. Under 2010 SSA guidelines, people who have not yet reached full retirement age can earn only $14,160
Does winnings from the casino count as earned income for my social security?

Does winnings from the casino count as earned income for my social security?

Gambling proceeds are not considered earned income if you do not report the income a self-employment income. Professional gamblers report gambling as self-employment income in

How much money can you earn while collecting Social Security without reducing your benefit?

The Annual Earnings Test for 2011 hasn't been released yet, but budget projections indicate there may be no change from 2010. For the 2010 tax year, the answer depends on your

How much can you earn while collecting Social Security after age 70?

There is no limit on the amount of money you can earn while receiving Social Security retirement benefits after you reach full retirement age. At 70, you are well clear of tha

What is considered income while on Social Security?

Social Security only considers earned income from an employer or self-employment, up to a cap of $106,800.00, to count as income for their purposes. Typical sources of unear

How much money can you earn while collecting Social Security at age 47?

At age 47, the only forms of Social Security you can collect are survivors' benefits (if you are a widow or widower, or an ex-spouse raising minor children under age 16) or di

Are social security benefits considered income?

Yes social security benefits are considered to be income and when you have other sources of worldwide income it is possible for some your social security benefits to become ta

Is any of this considered earned income if you and your wife live on social security income and a small pension benefit but no labor is performed?

No. Social Security and Pension income are not considered earned  income for the purposed of the Earned Income Tax Credit. This is  not to say that you will not have to file