# Social Security tax that deduct out of husband weekly paychecks. And when he Retire,



## jasmine31 (Jul 12, 2016)

Thank you Ms. EleGirl, Sir anonmd, Sir uhtred, Sir tech-novelist, Sir Burnt Kep for your advice. Thank you.


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## EleGirl (Dec 3, 2011)

jasmine31 said:


> Here is my question: I know yearly my husband max out his Retirement savings. I know the 401k and IRA are SEPARATE from Social Security taxes right?
> I ask this because I see my husband paychecks (he gets pay weekly), and in his paychecks it automatically deduct for Social Security tax.


Yes 401K, IRA and SS taxes are separate things. He pays 6.2% Social Security tax (old age, survivor, and disability insurance) on the first $127,200 he earns. His employer also pay Social Security another 6.2%. 

They also withhold some for Medicare that he will be able to get when he’s retired or on disability.




jasmine31 said:


> So when he retire, he can collect BOTH--simultaneously both his Social Security retirement (the Social Security tax that deduct from his paychecks), AND his 401k and IRA right?


Yes

And as his wife, if you are married to him for 10 years or more, can draw social security on his account. While he is alive you will get 50% of what he gets. So let’s say he gets $2,600 a month. 

You will get $1,300 a month. If he passes away before you, you will get his entire amount, or $2,600.



jasmine31 said:


> The IRA/401k are his, he max it out every year. That is SEPARATE from the Social Security tax that deduct from his paycheck, so he should get BOTH simultaneously when he retire right? I mean it his hard work money, Social Security tax--the goverment deducted out of his paychecks.


Yes



jasmine31 said:


> The thing is I heard that the government might say No and not give him his Social Security payment, due to his income and the six-figures he has in his 401k/IRA.. Can the goverment just do that to someone? Just due to they have more than decent money in their 401k/IRA?


The above is wrong. He is entitled to social security. His 401k & IRA savings will not impact what he gets from social security.




jasmine31 said:


> (This is what I heard only from one poster told me, that the government can do that, I don't know how accurate.)--But I heard the goverment have the rights to eleminate someone Social Security payment when they retire, eventhough it is the government that deduct their hard work money out of their paycheck every week for Social Security tax.. BUT if the goverment see you have alot of money in your 401k/IRA, they will cut/eliminate your Social Security payment. (Government will keep that money and give it to those who make much less income and have much less in their retirement).


Wrong

There has been talk about Social Security not paying monthly benefits to the super wealthy, like people who earn millions a year. But that’s not how it works wright now. And I as it stands right now, you two do not earn millions a year.



jasmine31 said:


> Can anyone help confirm that above, how accurate is this? Can the government do that to you?
> 
> So the government have the rights to cut your Social Security payment and not give it to you when you retire?
> 
> ...


At this time there is Medicare for the elderly. You both have paid into Medicare and will continue to pay as long as you work. When you retire, you will get:

Medicare A for free. That’s hospital insurance. It covers most costs if you are in a hospital.

Then you sign up for Medicare Part B. That’s about $134 a month right now. It has something like a $180 a year deductible and then copays.

You can buy a Medicare supplemental policy. I have one that covers my Medicare deductible, all co-pays and things that Medicare does not pay. That’s about $130 a month.

Then you also get Medicare Part D – that’s drug insurance. Mine is under $30 a month. And I have to pay co-pays on the drugs. 



jasmine31 said:


> We at the age (32 and 31), we don't have medical expense right now, but for sure when we old hit our retirement age we going to need those cash, because Health insurance can't pay 100% fully of every single medical expenses for us (and specially old age medical expense too), and we all know old age people when they get sick it can be very very expensive.


You can really cut down your out of pocket expenses… see by response above about Medicaid.



jasmine31 said:


> I want to make this clear. No, we not depending on Social Security payment. Ofcourse not. That is why we saving up as much 'cash liquids' as we can in our Savings accounts.. My husband do have a six-figures in his Saving accounts. In addition to a six-figures in his Retirement savings (his 401k/IRA). He is doing fine by himself alone with his income.
> 
> The thing is I hope he get 'some' of the Social Security tax that he been paying to the government all his life, at least get some back when he at old age. This is his hard working money, it the government that deduct it own of his weekly paychecks.
> 
> Personally, I find it not fair if the government decide to cut his Social Security payment when he old and retire, just because he has a six-figures in his Saving accounts, and a six-figures in his Retirement savings (his 401k/IRA).. It his hard work money that he work for, and he work a dangerous job too (day to day dealing Fuel which is highly flammable. Or Hydrofluoric Acid which is highly corrosive). Government deduct Social Security tax out of his weekly paychecks. I hope they at least give him 'some' back in his retirement old age. Arg! God damn it.


Someone has been telling you a lot of things that are not true.


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## anonmd (Oct 23, 2014)

EleGirl said:


> The above is wrong. He is entitled to social security. His 401k & IRA savings will not impact what he gets from social security.
> 
> 
> Wrong
> ...


Well, yes BUT - If you retire before 70 and have substantial non SS income you will have to give back $1 for every $2 you earn over a certain dollar threshhold, they are taking back some of the social security. Once you hit 70 that goes away but you get taxed on 85% of SS if I have it all straight. 

There is also the actuarial problem the social security is only taking in enough to pay roughly 75% of the benefits 10-20 years or down the line. So it is somewhat likely you will collect 75% of the current benefit and have 15-39% of 85% of the remainder that taxed away.


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## EleGirl (Dec 3, 2011)

anonmd said:


> Well, yes BUT - If you retire before 70 and have substantial non SS income you will have to give back $1 for every $2 you earn over a certain dollar threshhold, they are taking back some of the social security.


Full retirement age is between 66 and 67 depending on the year you were born, not 70.

https://www.ssa.gov/planners/retire/retirechart.html

If you are under*full retirement age*for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit.

For 2017*that limit is*$16,920.

In the year you reach*full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit, but we only count earnings before the month you reach your full retirement age.

If you will reach full retirement age in 2017, the limit on your earnings for the*months before full retirement age is*$44,880.

Starting with the month you reach full retirement age, you can get your benefits with no limit on your earnings.

https://faq.ssa.gov/link/portal/340...k-and-get-social-security-retirement-benefits



anonmd said:


> Once you hit 70 that goes away but you get taxed on 85% of SS if I have it all straight.


No one pays federal income tax on more than 85 percent of his or her Social Security benefits based on Internal 
Revenue Service (IRS) rules. If you: 

•	file a federal tax return as an "individual" and your combined income* is 

o	between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits. 

o	more than $34,000, up to 85 percent of your benefits may be taxable.​•	file a joint return, and you and your spouse have a combined income* that is 
o	between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits 
o	more than $44,000, up to 85 percent of your benefits may be taxable.​
https://www.ssa.gov/planners/taxes.html



anonmd said:


> There is also the actuarial problem the social security is only taking in enough to pay roughly 75% of the benefits 10-20 years or down the line. So it is somewhat likely you will collect 75% of the current benefit and have 15-39% of 85% of the remainder that taxed away.


I'm answering for what it is today. We have no idea what will be done in the future. The reason that there is not enough in the SS fund is that the crooks in Congress (both parties) took the money and blew it on their pet projects instead of investing it, and saving it, like they were supposed to.


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## anonmd (Oct 23, 2014)

Thanks for clarifying the facts . 

That is very generous of our government to let us get at least 15% of our social security 'tax free'. 

My point remains, if your income is high you will pay tax on 85% of your social security. Since they've been extracting 12.4% of my income my entire working life (I count both my payment and the 'employer payment') taxing you again to me is taking away a benefit. 

As for your last point, sure they spent it on something else over the years. What they spent was replaced by US Treasuries, it is only after those Treasuries are redeemed that the benefit cut needs to be implemented.


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## EleGirl (Dec 3, 2011)

anonmd said:


> Thanks for clarifying the facts .
> 
> That is very generous of our government to let us get at least 15% of our social security 'tax free'.
> 
> My point remains, if your income is high you will pay tax on 85% of your social security. Since they've been extracting 12.4% of my income my entire working life (I count both my payment and the 'employer payment') taxing you again to me is taking away a benefit.


Yes a person will pay taxes on up to 85% of their SS based on their income level. I don't have a problem with that. Though, since I now get SS, I would of course prefer to pay no taxes. Who wants to pay taxes?

The average SS payment is $1,500.46 for men and $1,182.36 for women. For most people getting SS, it's all that they have as income. So the majority pay no income taxes at all.

https://www.fool.com/retirement/2016/12/16/americans-average-social-security-benefit-at-age-6.aspx




anonmd said:


> As for your last point, sure they spent it on something else over the years. What they spent was replaced by US Treasuries, it is only after those Treasuries are redeemed that the benefit cut needs to be implemented.


My point was that had they invested the money that we all put in, the fund would have so much money that it would never run dry. Just giving by the amount put in makes no sense. IMO, our gov should be responsible to handle our money wisely. SS is our money.


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## anonmd (Oct 23, 2014)

The treasuries paid interest which was credited to the fund, now it is being rapidly spent down. Fact.


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## uhtred (Jun 22, 2016)

He gets the social security and retirement plan separately. 

There is of course no knowing how laws might change in the future, but there are many other people in the same situation so I expect elected politicians will not make changes that will lose them a lot of votes.

The biggest risk to his retirement is probably not changes in how social security and retirement are treated, but large scale financial risks - economic collapse, run-away inflation etc. Those are risks that everyone in the country shares. 

We have always been very conservative and spread our money out including some in foreign funds and some in physical gold. Other people manage their money in different ways, there is no single right answer.


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## tech-novelist (May 15, 2014)

EleGirl said:


> Yes a person will pay taxes on up to 85% of their SS based on their income level. I don't have a problem with that. Though, since I now get SS, I would of course prefer to pay no taxes. Who wants to pay taxes?
> 
> The average SS payment is $1,500.46 for men and $1,182.36 for women. For most people getting SS, it's all that they have as income. So the majority pay no income taxes at all.
> 
> ...


Actually that is not correct. The amount of investing needed to pay promised benefits indefinitely would have forced them to buy up all the big companies in the US. Would it really be an improvement to have the government do that?

And of course, expecting the government to be careful with our money is like expecting a teenager to drive responsibly when drunk.


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## tech-novelist (May 15, 2014)

anonmd said:


> The treasuries paid interest which was credited to the fund, now it is being rapidly spent down. Fact.


Those "special non-marketable Treasurys" have the same value as an IOU that you write to yourself, because that's what they are, for the value of "yourself" = the federal government.


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## BURNT KEP (Oct 3, 2012)

The way things are going by the time you are ready to retire SS will probably not be there or it will become radically different.


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