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.