In 2012, the maximum taxable earnings for Social Security are $110,100.
The Social Security tax cap for 2006 was 6.2% of the first $94,200 of wages.
The Social Security tax cap for 2001 was $80,400.
106,800
1992
$106,800. Remember there is no cap on the Medicare tax.
300000
The Social Security tax cap was last raised in 2009, increasing 4.7% from $102,000 to $106,800. It remains unchanged for 2010 and 2011.
The government establishes an income cap for the Social Security tax, which limits the amount of earnings subject to this payroll tax. Each year, the Social Security Administration sets this cap, which is adjusted based on changes in national average wage levels. Earnings above this cap are not taxed for Social Security purposes, although they may still be subject to other taxes, such as Medicare tax. This cap helps ensure that Social Security funding is balanced with the contributions from higher earners.
Social Security Taxes
No cap. Your savings are not a factor in receiving social security benefits. After all, the government is simply returning YOUR money that you paid into your whole working life.
I am 65. My full Social Security retiredment age is 66. I wnat to draw social security but am concerned that if I take SS payments and draw from my 401K that i will exceed the $14,000 + cap on annual wages. Arel draws from my 401K counted against the 14K cap ??
August 31, 2012