HomeSocial Securitycity offered a 457b deferred compensation..Will my Social Security benefits be subject to any reduction
city offered a 457b deferred compensation..Will my Social Security benefits be subject to any reduction
March 5, 2019
Q) I just turned 62. I have 23 years employment paying into SS. I have 16 years working for a city police department that did not pay into social security. Instead the city offered a 457b deferred compensation program in which they contributed 4% of my base salary but no additional money for any overtime I earned. Will my SS benefits be subject to any reduction in benefits such as the windfall elimination provision?
A) Deferred compensation shouldn’t affect Social Security benefits. Generally, the Social Security Administration isn’t worried about payments that aren’t for work in the current period. Because deferred compensation typically is subject to Social Security tax withholding, choosing to defer pay shouldn’t reduce the benefits that eventually will be available when a person goes to collect benefits, either. Source: https://finance.zacks.com/deferred-compensation-affects-social-security-benefits-11598.html