Will 401k/403b withdrawals or home sale affect my Social Security widow benefits?

Retirement account withdrawals (401k/403b) DO count as income for Social Security purposes if you're under Full Retirement Age. If you're between 60-FRA, you can only earn up to $22,320 in 2025 before they start reducing your widow benefits ($1 reduction for every $2 earned over limit). The good news is that capital gains from selling your primary residence usually don't count toward this earnings test - only wages and self-employment income do. However, if you invest the profits and earn interest/dividends, THAT would count as income for tax purposes.

I think the previous answer is wrong!!! I just went through this last year and had my benefits CUT because I took money from my 401k!!! The SSA counted it as income and I lost 3 months of checks!!! Be VERY careful and talk to SSA directly before you do ANYTHING!!!! The rules are CRAZY complicated!!!!!

my dad had similar issue when he sold his farm. profit didnt affect his actual ss payment but he did have to pay more taxes on his benefits that year. something about combined income calculation. maybe thats what happened to the person above?

There's some confusion here that needs clarification. For Social Security's earnings test (which determines if benefits are reduced), only wages from employment or net earnings from self-employment count. 401k/403b withdrawals do NOT count toward the earnings test limit ($22,320 in 2025 if you're under FRA). Home sale profits also do NOT count toward the earnings test. HOWEVER, both retirement withdrawals and potentially some home sale profits (if above exclusion limits) DO count toward your "combined income" which determines if your Social Security benefits are TAXABLE. These are two completely different calculations: 1. Earnings test = benefit amount reduction 2. Combined income = taxation of benefits Many people confuse these two concepts. If your benefits were reduced after a 401k withdrawal, it was likely due to other factors or a misunderstanding.

I had the exact same concerns last year! I was also worried about losing my widow benefits when I needed to take money from my retirement accounts. I struggled for weeks trying to get through to someone at Social Security to explain the rules clearly - kept getting disconnected or waiting for hours. Finally, I found this service called Claimyr (claimyr.com) that got me connected to an actual SSA representative in under 20 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU. The rep confirmed exactly what the helpful person above said - retirement withdrawals don't affect the earnings test, only earned income does. Saved me from making financial decisions based on incorrect information!

just wanted to add that if youre selling your house be sure you qualify for the capital gains exclusion which is $250,000 for single filers and $500,000 for married filing jointly. you need to have lived in the house as your primary residence for at least 2 out of the past 5 years. sounds like youre well under that amount anyway but something to keep in mind if your profit was bigger.

When my husband died I got so confused about all these rules. Ended up just putting everything off for a year because I was afraid of losing benefits. Wish I'd asked sooner like you did!

Thanks everyone for the helpful responses! So to summarize what I've learned: 1. 401k/403b withdrawals DON'T count for the earnings test that would reduce my widow benefits 2. Selling my home also WON'T reduce my benefits 3. BUT both might increase how much of my benefits are taxable This is such a relief. I was holding off on accessing my retirement funds because I thought I'd lose benefits. Going to schedule both transactions next month!