quote:
reduce your Social Security if you are also taking 401k withdrawals. = This already happens. If you will reach full retirement age in 2021, you can earn up to $4,210 per month without losing any of your benefits, up until the month you turn 66. But for every $3 you earn over that amount in any month, you will lose $1 in Social Security benefits. Conceivably, you can earn income to a point where you will receive exactly ZERO dollars of Social Security. So, if you hear about or read about "Means Testing" is coming...that's BS, it's already here.

quote:
That is incorrect. 401K withdrawals are not earned income and do not impact Social Security benefits. What you are referring to is if someone still has a job.

Ahhh,...re-read. I am correct. If you are receiving SS benefits and have a job and taking 401k distributions that's one scenario. The other second scenario is receiving SS benefits and DO NOT have a job and taking 401k distributions. Regardless, the 401k distribution + job Earned Income = Taxable Income ** AND ** if you do not have a job then 401k distribution = Taxable Income.

Taxable Income is used to determine SS benefits.

Read on...

This bolded statement is taken from the poster I was replying to reduce your Social Security if you are also taking 401k withdrawals.

When taking Distributions from a 401K it's called "Taxable Income", not Earned Income.

I am retired and 61 - turn 62 in 2021. I am converting $300k a year from a Traditional IRA to a Roth IRA. If I applied for Social Security benefits starting at age 62(in 2021)the $300k conversion is labeled Taxable Income, not Earned Income. That conversion alone would prevent me from receiving any SS benefits at age 62 and I do not have a job.

I have to complete all my conversions before applying for SS benefits. If I apply for SS benefits and receive ZERO - I lock in my SS benefit for the remainder of my life because I applied for them; hence, you wait until the conversions are completed and then apply. Otherwise, you cheat yourself out of a higher SS benefit.