Working past age 70 and collecting Social Security
My company is pressing me to work beyond my scheduled retirement by more than 6 months. I am tempted to do so, but because I will be over 70 during that 6 month period, I will be collecting Social Security and a paycheck. I earn a base salary of roughly 118K with bonus of 40K each year. My questions: 1. In doing so, how do I adjust for my tax burden? 2. Will I be able to continue to participate in my 401K during this time at the max value to offset the tax burden?
Terry Says
As long as you are earning income, you can participate fully in your 401(k) plan. And you should do so. Don’t be worried about paying taxes on those SS benefits. You can make quarterly estimated payments. Or prepare for an extra payment when your taxes are due. As long as you pay in withholding from your salary, you will be covered. In fact, you can even adjust your salary withholding to have more taken out.
Believe me, it’s great to keep working as long as you can, especially if you really like your job!
