Can I contribute to 401k to stay under SS earnings limit while collecting survivor benefits?

Unfortunately, 401k contributions don't reduce your countable income for Social Security earnings test purposes. SSA looks at your gross wages before any deductions (including retirement contributions) when applying the annual earnings limit. For 2025, that limit for someone under FRA is projected to be around $22,750 (they adjust it yearly). Anything you earn above that will cause SSA to withhold $1 in benefits for every $2 you exceed the limit. Your overall strategy of taking your own benefit at 62 and then switching to survivor benefits at FRA is generally sound, especially since your wife was a higher earner. But the 401k contributions won't help you stay under the earnings limit.

I'm in almost the EXACT same boat as you!! My husband passed in 2021 and I'm trying to figure out the whole SS mess. The Social Security office is IMPOSSIBLE to reach by phone - I've tried calling TWENTY times and either get disconnected or told the wait is over 2 hours!!! So frustrating!!! From what I was told by my financial advisor, they look at your earnings BEFORE any deductions for the earnings test. So your 401k contributions won't help keep you under the limit. It's so UNFAIR how they handle this stuff!!

I work with retirees on their Social Security planning, and I can clarify a few things here: 1. For the earnings test, SSA counts your gross wages or net self-employment income BEFORE any deductions like 401k contributions, taxes, etc. 2. Your strategy of taking your own benefit at 62 and switching to survivor benefits at FRA (67) can be smart in many cases, but only if your earnings won't cause most of your benefits to be withheld. 3. You should absolutely continue making 401k contributions regardless of Social Security - they're completely separate issues. 4. Consider that survivor benefits are reduced if taken before your FRA, but NOT reduced if taken at or after FRA. Meanwhile, your own retirement benefit is permanently reduced by about 30% if taken at 62. Have you calculated whether your survivor benefit at FRA would be significantly higher than your own retirement benefit at 62? That's the key calculation here.

my husband died last year and i went thru all this. SS is SO CONFUSING! i just wanted to say that you should really try to talk to someone at SS directly because the rules are complicated and everyone's situation is different. I thought I understood everything from reading online but when I finally got through to them they told me something completely different about my options than what I thought

I think you need to run actual numbers. If your part-time job pays $35k, and the earnings limit is $22k (approx), you'd lose $6,500 in benefits ($1 for every $2 over). But if your benefit is $1,600/month, that's $19,200 annually, so you'd still come out ahead by about $12,700 even with the reduction. Plus you'd get 5 years of some benefits vs nothing. Everyone's quick to say "wait till FRA" but sometimes claiming early even with penalties makes financial sense depending on your specific numbers.

i got confused so I looked this up - if u start your own benefits at 62 and then switch to survivors later, your survivors benefit WONT be reduced. BUT if u take survivors benfits early and switch to your own later, your own benefit IS reduced. Social security is so complicated!!

Are you SURE you want to keep working? When my husband died I thought I needed to keep working but then realized life is SHORT. I ended up cutting back to minimal part-time (staying under the earnings limit) and it's been the best decision. Just something to consider - sometimes the financial "perfect" answer isn't the best life answer. Maybe take your benefit, work just enough to stay under the limit, and actually ENJOY these years! Just my two cents as someone who's been there.

Since you mentioned health insurance: be aware that if you take Social Security at 62, you still won't be eligible for Medicare until 65. Make sure you factor your health insurance costs into your calculations for those 3 years if you're planning to reduce your work hours. Many people forget this important detail when planning early retirement with Social Security.

Yes you can as long as the 401K contributions are pre tax and taken out of your paycheck by your employer.

I'm sorry for your loss, Andre. Losing a spouse is incredibly difficult, and navigating Social Security on top of that grief is overwhelming. I wanted to add something that might help with your decision-making process: you mentioned your wife was the higher earner at about 2.5x your income. Given that significant difference, your survivor benefit strategy is likely sound, but consider this timing detail - if you do decide to take your own benefit at 62 while working, any months where your earnings cause benefits to be withheld aren't "lost forever." Once you reach your full retirement age, SSA will recalculate your benefit to give you credit for those withheld months, effectively increasing your monthly payment going forward. This doesn't change the fact that 401k contributions won't help with the earnings test, but it does mean the earnings test penalty isn't as harsh as it initially appears. Also, since you're planning to switch to survivor benefits at FRA anyway, those recalculated retirement benefits might not matter much to you personally, but it's good to understand the full picture. The key is running the numbers for your specific situation - sometimes even with the earnings test reducing benefits, claiming early can still make financial sense depending on your work income and benefit amounts.

I'm sorry for your loss, Andre. Having gone through a similar situation myself, I understand how overwhelming it can be to navigate these decisions while grieving. One thing I'd like to add that might help clarify your situation: you mentioned being concerned about the earnings test, but there's actually a monthly earnings test that might work in your favor. While there's an annual limit (around $22,750 for 2025), there's also a monthly test of about $1,895 per month. In your first year of claiming benefits, you can use whichever test is more favorable. This means if you start benefits partway through the year, you might be able to work full-time until you claim, then reduce to part-time hours afterward to stay under the monthly limit. This could give you more flexibility than the annual test alone. Also, since you're planning the "claim early, switch later" strategy, remember that survivor benefits don't get delayed retirement credits past your FRA like your own retirement benefits would. So there's no advantage to waiting past 67 to claim the survivor benefit - that $2,850 is likely the maximum you'll get from that benefit. Given the significant difference between your projected benefits ($1,640 vs $2,850), your strategy makes sense even with the earnings test complications.

Andre, I'm so sorry for the loss of your wife. Having helped many clients through similar situations, I want to emphasize something that might give you peace of mind about your strategy. While everyone has correctly pointed out that 401k contributions won't help with the Social Security earnings test, your overall approach is still very sound given your numbers. With your wife earning 2.5x your income, that survivor benefit at $2,850 versus your $1,640 retirement benefit represents a significant difference that makes the "claim and switch" strategy worth considering. Here's what I'd suggest: create a spreadsheet comparing three scenarios over the next 10 years: 1. Claim your benefit at 62 with current work income (factoring in earnings test reductions) 2. Wait until FRA to claim survivor benefits only 3. Reduce work hours at 62 to stay under the earnings limit while claiming your benefit Don't forget to factor in the value of continuing those 401k contributions (even if they don't help with the earnings test), your health insurance needs, and as others mentioned, the monthly earnings test option for your first year. The math often shows that even with earnings test reductions, getting 5 years of some Social Security income plus continued 401k growth can outweigh waiting, especially when you're planning to switch to the higher survivor benefit anyway.

Andre, I'm truly sorry for your loss. Navigating Social Security after losing a spouse is complex enough without the added confusion around earnings limits. Just to add one more perspective that might help with your decision: you mentioned your HR department wasn't sure about the 401k/earnings test question. This is actually pretty common - even HR professionals often don't know the nuances of Social Security rules since they deal more with payroll and tax withholding rather than SSA benefit calculations. Given all the great advice here, I'd strongly recommend scheduling an appointment at your local Social Security office rather than trying to call. Yes, it might take a few weeks to get an appointment, but you'll get to sit down with someone who can look at your specific earnings record and walk through your options. Bring a list of questions including: 1. Your exact survivor benefit amount at FRA vs your retirement benefit at 62 2. How the monthly earnings test would work in your first year of claiming 3. Whether there are any other survivor benefit strategies you should consider The face-to-face meeting will give you confidence in whatever decision you make, and you can get answers specific to your situation rather than general guidance. Plus, they can help you understand any other benefits you might be eligible for that haven't been mentioned here. Your strategy sounds solid based on the numbers you've shared, but getting official confirmation will give you peace of mind.

Andre, I'm so sorry for your loss. Losing a spouse after nearly 30 years together is heartbreaking, and trying to navigate Social Security decisions during this time adds another layer of stress. I see you've gotten excellent advice here about the 401k contributions not helping with the earnings test - that's unfortunately correct. However, I wanted to share something that might help with your overall planning: have you considered the "do-over" option if things don't work out as planned? If you claim your retirement benefit at 62 and find that the earnings test is reducing your benefits more than expected, you have the option within your first 12 months to withdraw your application, pay back what you've received, and start fresh later. It's like a one-time reset button. This might give you some peace of mind to try the "claim early and switch later" strategy knowing you have an escape route if needed. Also, given that your daughter was young when you scaled back your career, she might still be eligible for benefits on your wife's record if she's under 18 (or under 19 and still in high school). This won't affect your survivor benefit amount, but it's additional money that could help your family during this transition. The strategy you're considering makes a lot of sense given the significant difference in your benefit amounts, and as others have mentioned, running those specific numbers will help you feel confident in your decision.

Andre, I'm so sorry for the loss of your wife. What a difficult time to have to navigate these complex Social Security decisions. I wanted to add one more consideration that hasn't been mentioned yet: if you do decide to work part-time while collecting your retirement benefit at 62, make sure to track your earnings carefully throughout the year. The earnings test is applied on an annual basis, so if you have a particularly high-earning month (maybe overtime, bonus, or seasonal work), it could push you over the limit even if your average monthly earnings seem manageable. Some people find it helpful to set up a simple tracking system or even ask their employer to help monitor when they're approaching the annual limit so they can adjust their hours if needed. Since the limit for 2025 will be around $22,750, that's roughly $1,896 per month - but remember, this is gross wages before any deductions. Given your strategy to switch to survivor benefits at FRA anyway, even if you do exceed the earnings limit some years, you're not permanently losing those benefits since you'll be switching to the much higher survivor amount. But staying organized with your earnings tracking can help you maximize what you receive during those transition years. Your overall approach sounds very thoughtful given your circumstances. Wishing you clarity as you work through these important decisions.

Andre, I'm deeply sorry for the loss of your wife. Having worked in retirement planning for many years, I see the emotional and financial challenges that come with losing a spouse, especially when they were the primary earner. Based on everything discussed here, your strategy is quite sound despite the 401k contribution limitation. The $1,200+ monthly difference between your benefits ($1,640 vs $2,850) makes the "claim early, switch later" approach very compelling mathematically. One additional consideration I'd like to mention: since you scaled back your career when your daughter was young, you likely have some lower-earning years in your Social Security calculation. If you continue working part-time for several more years, those additional earnings (even if reduced hours) could potentially increase your own retirement benefit calculation by replacing some of those earlier lower-earning years. While this won't change your overall strategy since the survivor benefit will still be higher, it could provide a small bump to your retirement benefit and give you more options if your circumstances change unexpectedly. The combination of the monthly earnings test in your first year, the potential "do-over" option, and careful earnings tracking should give you the flexibility to make this strategy work effectively. Your plan shows thoughtful consideration of your unique circumstances.

Andre, I'm so sorry for the loss of your wife. What a heartbreaking situation to navigate these complex financial decisions while grieving. I wanted to add something that might help with your timing decision: since you mentioned you'll turn 62 next April, you have some time to prepare and potentially optimize your approach. Consider this timeline strategy: In the months leading up to April, you could: 1. Schedule that in-person SSA appointment several others mentioned to get your exact benefit amounts confirmed 2. Set up a detailed earnings tracking system with your HR department 3. Calculate different scenarios based on various part-time work schedules Then, when you do claim at 62, you could potentially front-load more work hours in the early months of that year (before claiming) and then scale back afterward to stay under the monthly earnings test limit. This could help you maximize both your work income and Social Security benefits in that transition year. Also, don't forget that any earnings test "penalties" in your early claiming years won't matter much to your long-term financial picture since you're switching to that much higher survivor benefit at 67 anyway. You're essentially getting 5 years of some income versus no income, even if it's not the full amount due to the earnings test. Your strategy is well-thought-out given your circumstances. Take care of yourself during this difficult time.

Andre, I'm so sorry for your loss. Losing a spouse after 29 years is incredibly difficult, and having to navigate these complex Social Security decisions during such a challenging time makes it even harder. I've been following this thread and wanted to add one more perspective that might be helpful. While everyone has correctly confirmed that 401k contributions won't help with the earnings test, there's actually a silver lining to your situation that I don't think has been fully emphasized: you have nearly a full year to plan and optimize your approach before turning 62 next April. This gives you a unique opportunity to potentially "practice" different work schedules and see how they would affect your earnings calculations. You could track your current part-time income over the next few months to see exactly where you'd land relative to that $22,750 annual limit or $1,896 monthly limit. This real-world data would help you make a much more informed decision about whether the earnings test would significantly impact your benefits. Also, given the substantial difference between your retirement benefit ($1,640) and survivor benefit ($2,850), even if the earnings test reduces your benefits by 25-30% in some years, you'd still be receiving meaningful income during those 5 transition years before switching to the full survivor benefit at 67. Your strategy is sound, and this community has given you excellent advice about scheduling that SSA appointment and considering all the various options. Take your time with the decision - you've got this!