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Can 401(k) Contributions help bypass Social Security Earnings Limit?
If you start receiving Social Security Benefits before your full retirement age while working, you can have $1 for every $2 dollars withheld from your check if you earn more than $18,960 in 2021 and $19,560 in 2022. Some people think if they contribute to their qualified retirement plan, it will lower their annual income and alleviate the reduction of their Social Security Benefits but that is not how it works. This video will explain the dynamics of this relationship.
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