When its time for me to retire, can i collect social security in addition to my 401k savings?
The reason im asking is because, it would seem as though some how it would be considered "double dipping"...., I've got about 30 years until retirement, so im hoping that there are no surprises, for example being forced to choose between which one "retirement" egg to use. I just hope that the "forces that be" when the time comes for me to retire dont tell me that I cant have the money that i worked and earned a lifetime to accumulate.
Public Comments
- yes, you can.
- Sure, you can collect SS and 401k at the same time. Think of your 401k as a savings account. That's really all it is.
- They are completely separate accounts and do not affect one another. Your 401k money is yours, and you can withdraw from it after leaving your company, or turning age 59 1/2, whichever is later. You will owe taxes on the money. If you withdraw prior to age 59 1/2 you will pay taxes AND a 10% penalty for early w/d. Your Social Security benefits are separate and you can start to receive them as early as age 62. To receive the maximum SS benefit, you will need to wait until age 66 or 67 depending on your age. Prior to age 65, your SS benefits can be reduced by earnings from a job. After age 65 they are not. By the way, you might also have a couple of IRA accounts or other savings accounts. None of them affect the others. Don't worry about double dipping. It is all money YOU have contributed, so it's YOUR money you are getting back, completely legal and correct. Hope this helps.
- Make sure you max your 401K. You will be needing it when you retire. Don't count on living on that SS check.
- As the laws stand now you can collect both. But I wouldn't be suprised if they modify the social security laws to allow for means testing...which means if you receive revenue from an outside source that is over a certain amount then your social security may be reduced. That would make social security what it should be...a method of keeping old people from being so poor that they end up selling apples on the street corner to survive....it shouldn't be an entitlement for all. And no..Social Security is not your money. It's a tax and nothing more. The fact that it's earmarked towards a retirement program complicates things but doesn't change the fact that it's a tax.
