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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 14837
Experience:  15years with H & R Block. Divisional leader, Instructor
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My wife and I are 62 years old and retired. We do not have

Customer Question

My wife and I are 62 years old and retired. We do not have any type of retirement program to put money into. I plan on going back to work on a part time basis. I started my social
security which has a limit of $15,720 ADDITIONAL MONEY I can make without a penalty above
my $1819 current check per month. QUESTION: IF I MAKE FOR EXAMPLE $20,720 IN A YEAR, CAN THE ADDITIONAL $5000 ( TO AVOID A SOCIAL SECURITY PENALTY FOR MONEY MADE OVER $15,720) .... BE DEPOSITED IN AND IRA AS A DEDUCTION TO BRING THE
INCOME BACK TO $15,720 FOR THE SOC. SEC. LIMIT.. STEVE ****
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

Hello

SSA would not look at the IRA contribution as lowering your income fro calculating the reduction. They look at your income as reported on your W2.

When they figure out how much to deduct from your benefits, they count only the wages you make from your job or your net earnings if you're self-employed. They include bonuses, commissions and vacation pay. A contribution to an IRA would not reduce that for you unfortunately.

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