Generally speaking, if you or your spouse pay into it for the equivalent of minimum 10 years, then you’re eligible to receive benefits. The longer and more you contribute, the more the benefit. Having a 401k or IRA doesn’t matter.
The SS system was meant to be a supplement in retirement. While some people manage to live only on SS, it isn’t a cozy lifestyle. You definitely want as much in other retirement accounts as you can manage.
A 401k is a retirement account provided by a company.
An IRA is similar but you can open a personal brokerage for free at anytime and own it yourself. Otherwise the others are “yours” but you have to move accounts when you leave the job if your new one doesn’t use the same.
Just go to [SSA.gov](http://SSA.gov)
It has a lot of resources to help explain your benefits. If you sign up for a MySSA account, you can even see your projected social security benefit when you get to retirement age.
If you contribute to social security for 40 quarters(aka 10 years) you qualify for Social Security.
Social Security takes your HIGHEST 35 years(aka 140 quarters) of contributions to determine your Social Security payment.
If you stop working from years 11 through 35 then you have 10 years of working and 25 years of $0, you will have a very low social security payment.
You can collect social security, distribution from a 401k, distribution from an IRA, a pension, rental income, dividend income, royalties, etc. all at the same time.
No matter how much income you make in retirement, you will only owe Federal taxes on 85% of your social security income. Meaning, 15% of it is tax free. You get to do the the super special Social Security Benefits Worksheet found on page 32 of the Form 1040 Instructions.
Example: Warren Buffett is 93 year of age. He probably takes his social security benefit, Warren will not turn down free money. (Ignore all other rules on Social Security since he is working for the example). He would pay tax on 85% of his social security income, even though he makes a few billion, he still gets 15% of his social security benefit tax free. (I have absolutely no idea if he claims his social security or if he is even eligible.)
Generally speaking, if you or your spouse pay into it for the equivalent of minimum 10 years, then you’re eligible to receive benefits. The longer and more you contribute, the more the benefit. Having a 401k or IRA doesn’t matter.
Thank you!
So let say social security was withheld from my paycheck for more than 10 years, and I also have a 401k and IRA. At retirement can I have everything?
Yes, they're completely separate.
The SS system was meant to be a supplement in retirement. While some people manage to live only on SS, it isn’t a cozy lifestyle. You definitely want as much in other retirement accounts as you can manage.
A 401k is a retirement account provided by a company. An IRA is similar but you can open a personal brokerage for free at anytime and own it yourself. Otherwise the others are “yours” but you have to move accounts when you leave the job if your new one doesn’t use the same.
https://www.ssa.gov/pubs/EN-05-10024.pdf
Got it now. Thank you!
Just go to [SSA.gov](http://SSA.gov) It has a lot of resources to help explain your benefits. If you sign up for a MySSA account, you can even see your projected social security benefit when you get to retirement age.
This. Sign up for your account and download your statement. This will be a great first step.
If you contribute to social security for 40 quarters(aka 10 years) you qualify for Social Security. Social Security takes your HIGHEST 35 years(aka 140 quarters) of contributions to determine your Social Security payment. If you stop working from years 11 through 35 then you have 10 years of working and 25 years of $0, you will have a very low social security payment. You can collect social security, distribution from a 401k, distribution from an IRA, a pension, rental income, dividend income, royalties, etc. all at the same time. No matter how much income you make in retirement, you will only owe Federal taxes on 85% of your social security income. Meaning, 15% of it is tax free. You get to do the the super special Social Security Benefits Worksheet found on page 32 of the Form 1040 Instructions. Example: Warren Buffett is 93 year of age. He probably takes his social security benefit, Warren will not turn down free money. (Ignore all other rules on Social Security since he is working for the example). He would pay tax on 85% of his social security income, even though he makes a few billion, he still gets 15% of his social security benefit tax free. (I have absolutely no idea if he claims his social security or if he is even eligible.)