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Is deferred compensation considered earned income for social security earning limits?
According to the local SSI office any retirement plan that qualifies with IRS rule 209 (xxx) is not counted as earned income.
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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…ny disability pay you report as wages.
Unfortunately Deferred Compensation is not considered earned income for IRA deduction limits. See IRS publication 590, page 7, table 1-1. Here it specifically has Def Comp pla…ns listed in the column of income NOT included when figuring your IRA deduction.
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…ome taxable income on your 1040 federal income tax return.
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 (disabilit…y) programs. Only SSI (Supplemental Security Income, a form of welfare) payments are means-tested and offset by either earned or unearned 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. …A little loop hole for you ;)
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.…
no its not
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… per year without incurring a penalty. For every $2.00 over the limit, $1.00 is withheld from benefits. There is an exception for the first year of early retirement, though (in this case, age 62). In the first year, there is no limit on the amount of income you can earn prior to the month you retire. You will not be penalized for pre-retirement income. For the remainder of the year, you will receive a full benefit check for each month in which you earn $1,180 or less (one-twelfth of $14,160). If you earn more than the maximum allowed, the Social Security Administration will withhold your monthly benefit check beginning in January of the following year until the overage is completely offset.
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… order to deduct travel and other expenses as well as to establish retirement accounts and show the income as a part of an ongoing source of income in order to qualify for bank loans. Recreational gambling income, including lottery winnings, are not considered earned income. The distinction between earned income and ordinary income is for such issues as earned income tax credit and qualifying for social security benefits. Almost any source of money, including gambling winnings, is going to be income. The money would be called unearned income in this case. Consult the SSIC office for the publications that can give you all the details.
2010 and 2011 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 ea…rn only $14,160 per year without incurring a penalty. For every $2.00 over the limit, $1.00 is withheld from benefits. There is an exception for the first year of early retirement, though (in this case, age 62). In the first year, there is no limit on the amount of income you can earn prior to the month you retire. You will not be penalized for pre-retirement income. For the remainder of the year, you will receive a full benefit check for each month in which you earn $1,180 or less (one-twelfth of $14,160). If you earn more than the maximum allowed, the Social Security Administration will withhold your monthly benefit check beginning in January of the following year until the overage is completely offset.
Your employer does that and they deduct automatically.
The earnings limit for Social Security in 2014 is $15,120/yr. ($1,260/mo.) One dollar in benefits will be withheld for every $2 in earnings above the limit.
Social Security earnings are not taxed.
Does the earnings ceiling of 34440 that Social Security uses include deferred income such as money set aside for medical expenses in a cafeteria Plan or money that is put into a 401 retirement plan?
Well first off, the earnings ceiling for 2007 is $97,500..it hasn't been as low as you suggest for decades! Some portions of the tax, the 1.65 medical for example, have no …ceiling. Generally, all income is considered taxable for these purposes. However, there are some (few) exceptions depending on many things, especially who your employer is and if your included in another government plan. You really should ask your payroll administrator about your specific programs and how they handle/qualify your contributions. Edit: This doesn't answer this question, at least not as I understand it--a question I have myself about Social Security. I think the person answering is referring to some other limit on earnings. But the question is about whether those of us who took out SS benefits before full retirement age, and who must continue working. I took out benefits starting at 62, but I have to continue working. For earnings over the limit of $14,160 (in 2010) that I earn, I have to give back $1 in benefits for every $2 earned. In the single year I reach full retirement benefits, that limit will be $37,680. Thereafter, there is no limit on earnings. So while I'm still earning money and collecting benefits, even though those new earnings eventually help increase my final SS calculation for monthly benefits, I have to consider how much I earn that will simply have to be given back that year! So the question is whether or not putting, for example, $2000 into an IRA of some kind will reduce this penalty on money earned over $14,160 (or $37,680 in the full retirement year). I called SS about this, but never got an answer. However, I recently found this answer on another site: http://www.irahelp.com/forum/viewtopic.php?f=1&t=2446&start=0 While not an official Social Security Admin answer, it does make sense: For purposes of the earnings test, wages used are the same as those defined as social security wages. Gross wages are subject to SS tax before 401k deferrals, therefore increasing 401k deferrals will not reduce the social security wages on which the earnings test is based. A FSA contribution or pre tax health insurance and certain other fringe benefits that are not subject to SS taxation may be used for this purpose.
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… an income tax return and possibly pay taxes. Depending on the amount of income you have and your filing status, you may or may not have to file a return.