Estimating Deferring my SSA payments in new year

[W16VA]

I will receive SSA payments while still working. The full-time may become part-time.  If my limit for Deferred Income (2025, over 67) is about 47K, can I assume the additional SSA (up to 47K ) can be deferred without incurring its own tax?  I am aware there is no penalty for withdrawal from Deferred by age 71. Is there any other consideration I should be aware of? Thank you!

[DavidD66]

I'm not sure what you mean by "Deferred Income".  If you are age 67 or older you are at full retirement age and there is no penalty for working and earning additional income.  To determine if your social security benefits are taxable take half of the Social Security money you collected during the year and add it to your other income. Other income includes pensions, wages, interest, dividends and capital gains.

• If you are single and that total comes to more than $25,000, then part of your Social Security benefits may be taxable.
• If you are married filing jointly, take half of your Social Security, plus half of your spouse's Social Security, and add that to all your combined income. If that total is more than $32,000, then part of your Social Security may be taxable.   

For more information see the following IRS website:  Social Security benefits may be taxable

[W16VA]

I am sorry; there were shortcuts. Deferring means making contributions to plans for Deferred Income (457b).

I am anticipating receiving SSA payments as an addition to my regular income next year, which I have been managing to reduce the taxable part of Taxable Income via my contribution to Deferred Income 457b.

Now, if half of the Social Security collected during the year is added to my income, can I increase my contribution into of 457b by an equivalent amount to offset its impact (from SSA)  on taxable income?

As that 454b contribution is likely to remain under some maximum threshold, subject to catch-up allowances for being over 69, what would that maximum be for tax year 2025?  

This also would tell me when regular income would be taxed more than it needs to be earned, when SSA payments are now permanently part of the formula, etc...

Thank you!! 

[DianeW777]

It's possible if you are still allowed to contribute to your 457b plan.  The link below will provide the contribution limits for 2025 and earlier.

• IRS COLA Increases for Dollar Limitations on Benefits and Contributions
  • 457 elective deferrals for 2025: $23,500 plus $7,500 (age 50 and over) | Total $31,000 

Based on your scenario, it's quite likely some of your social security income will be taxed, the maximum that can be taxed is 85%.

• IRS Publication 915 - page 16 worksheet

@W16VA