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New Member
posted Jul 18, 2022 7:26:10 PM

I’m 63 I take early social security. I have a 401k from a short term job. Will a distribution from it be counted towards my earned income

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3 Replies
Level 15
Jul 18, 2022 7:41:22 PM

Sorry no.  Or are you worried about having too much earnings?  See SS FAQ for working after retirement

https://www.ssa.gov/planners/retire/whileworking.html

Level 15
Jul 19, 2022 3:36:59 AM

@mgb570 - if you are concerned about earning too much money since you are younger than your Full Retirement Age, a 401k distribution will not be counted against the maximum earnings

 

"When we figure out how much to deduct from your benefits, we count only the wages you make from your job or your net profit if you're self-employed. We include bonuses, commissions, and vacation pay. 

We don't count 

pensions,

annuities, investment income, interest
, veterans benefits, or other government or military retirement benefits."

 

a 401k distribution is a form of pension......

Level 15
Jul 19, 2022 11:26:01 AM

Remember there are two separate tax issues regarding social security.  

A. Before your full retirement age, too much earned income will reduce your benefit.

B. At any age, your other taxable income will influence the amount of income tax you pay on your social security benefit.  

 

A distribution from your 401(k) is taxable income, and may increase the amount of tax you pay on your social security benefit.  But it is not earned income and will not reduce your benefit if you declare retirement before full retirement age.