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# I'm thinkng of retirering at 62 and still work, can I put

### Customer Question

I'm thinkng of retirering at 62 and still work, can I put into a 401k to offset my income
JA: The Retirement Accountant will know how to help. Please tell me more, so we can help you best.
Customer: collectimg social security and workimg. I will make 30000 per year and social security guide is I can only make 15000. so can I invest into a 401k so they don't deduct from my social security
JA: Is there anything else the Retirement Accountant should be aware of?
Customer: no
Submitted: 1 year ago.
Category: Social Security
Expert:  ABC Accounting Group replied 1 year ago.

Hi. The limit of 15,000 (15,620) relates to gross income. I did a quick calculator (birth date is just an example):

Birth date: 9/20/1954

Estimated earnings in 2016: \$30,000.00

Monthly benefit in 2016: \$1,341.00

First entitled in 2016? Yes

If you make 30,000, there will be 14,389 over the limit; Social Security lowers the benefits by \$1, for every \$2 over the limit. Estimating the overage, the benefits will be decreased by \$7,649. Without the decrease, your benefits would be (in this example):

Sept 2016 1,341

Oct 2016 1,341

Nov 2016 1,341

Dec 2016 1,341

Jan 2017 1,341

Feb 2017 1,341

and subsequently, you would receive: 1,341

If you had the 7,649 overage, they would take the 7,649 and divide it by the 1,341, which would equal 5.7 months and you would receive the following, instead:

Sept 2016 -0-

Oct 2016 -0-

Nov 2016 -0-

Dec 2016 -0-

Jan 2017 -0-

Feb 2017 938

and subsequently, you would receive: 1,341

If you wait until full retirement age, there would be no income limit.

There is a lot of information, listed above - if you have any questions, let me know.

Expert:  ABC Accounting Group replied 1 year ago.

On the 401k - unfortunately, if you contribute to your 401k, it will not have any effect on the social security limit/decrease in benefits. However, it will lower your taxes.