Social Security earnings record missing my 401k contributions - will this affect my future SS benefits?
I just checked my Social Security Statement online and noticed something concerning. My 2023 earnings for Medicare shows about $32,000 less than what I actually earned last year. Interestingly, that's almost exactly the amount I contributed to my 401k ($30,000 plus some employer match). Is this normal? I thought SS would show my total gross income before any deductions. Now I'm worried that my future retirement benefits will be calculated on this lower amount. Should I contact SSA to correct this or is this how it's supposed to appear? Really confused about why 401k contributions would affect what's showing up on my SS record.
16 comments
Join the conversation
Jade Santiago
Your earnings record should show your Medicare wages, which is generally your gross income. 401k contributions are included in your Medicare wages. They ARE excluded from FICA (Social Security) wages, but not Medicare. It does sound like there might be a discrepancy you should look into. When you look at your W-2, Box 5 shows Medicare wages and this should match what's on your SS statement for Medicare earnings. If they don't match, I'd definitely contact SSA to investigate.
0 coins
Lauren Johnson
•Thanks! I just double-checked my W-2 from last year and you're right - the amount in Box 5 is higher than what's showing on my SS statement. It's off by about the same amount I mentioned. So it sounds like this definitely IS an error that needs fixing. How would I go about getting this corrected? Will this actually impact my future benefits if I don't fix it?
0 coins
Caleb Stone
I had similar thing happen but opposite way lol. My ss statement showed MORE than I made. Found out employer reported wrong number. Def call them to check but get ready to wait foreverrr on hold.
0 coins
Lauren Johnson
•That's interesting it went the other way for you! Did you end up getting it fixed? I'm dreading having to call them because of the wait times.
0 coins
Daniel Price
•Medicare wages (which appear on your SS statement) absolutely should include your 401k contributions. This sounds like either an employer reporting error or an SSA processing issue. You definitely want to get this corrected as it could affect your future Medicare premium calculations, though it won't impact your Social Security benefit amount since 401k contributions are already excluded from those calculations. I'd recommend contacting SSA directly, but be prepared for potentially long wait times.
0 coins
Olivia Evans
my statment never matched my w2 either dont worry about it
0 coins
Daniel Price
•Actually, this is something that should absolutely be addressed. Your Social Security statement should match your W-2 Box 5 for Medicare wages. Discrepancies can indicate errors that might affect your future benefits or Medicare premiums. It's worth taking the time to have SSA correct these records.
0 coins
Sophia Bennett
If you need to call SSA to fix this, I'd recommend using Claimyr (claimyr.com). I had to deal with a similar earnings record issue and was dreading the phone wait. Used their service and got a callback from SSA in about 15 minutes instead of waiting on hold for hours. They have a video showing how it works at https://youtu.be/Z-BRbJw3puU. Totally worth it for me when I had to fix an earnings discrepancy from a previous employer that was affecting my SSDI calculation.
0 coins
Aiden Chen
•I TRIED CALLING SSA FOR THREE DAYS STRAIGHT!! Always disconnected after 2 hours on hold. This system is BROKEN!!! They make it IMPOSSIBLE to fix anything. Might try this service because I'm at my wits end trying to get someone on the phone about an overpayment notice.
0 coins
Zoey Bianchi
•Does this actually work? Seems sketchy to pay for something the government should provide for free.
0 coins
Jade Santiago
To clarify about your original question - there are TWO different earnings records that matter: 1. Social Security earnings (FICA): These do NOT include 401k contributions (they're exempt), and these are what determine your SS benefits. 2. Medicare earnings: These SHOULD include your 401k contributions, and affect Medicare premium calculations. So if your Medicare earnings are showing $32,000 less than they should, that's definitely an error. Your Social Security benefit calculation won't be affected, but it's still worth correcting for Medicare purposes. Bring your W-2 when you contact them.
0 coins
Lauren Johnson
•This makes perfect sense now! I was getting confused between the two different earnings types. I'll definitely contact them to fix the Medicare earnings record and will bring my W-2s as proof. Thank you for the clear explanation!
0 coins
Aiden Chen
My husband went through something similar last year but his was because his employer reported his wages under the wrong SSN (switched two digits). Took MONTHS to fix and multiple visits to the local office. Start the process now because it's going to take forever to get resolved!!
0 coins
Lauren Johnson
•Oh no, that sounds like a nightmare! I hope mine isn't that complicated. I think it's just a reporting error rather than a wrong SSN, but thanks for the warning about how long it might take.
0 coins
Lauren Johnson
UPDATE: I called my company's payroll department first and they confirmed there might have been a reporting error on their end. They're going to check their records and get back to me. If they did make a mistake, they said they can submit a correction to the SSA directly. Fingers crossed this resolves it without me having to deal with the SSA phone maze!
0 coins
Jade Santiago
•That's excellent! Going through your employer first is actually the right approach. If they confirm they made an error, they can file a corrected W-2 (W-2c) which will update the information with SSA. Smart move checking with them first!
0 coins