Quote:
Originally Posted by Hugh R
BOTH parties have mentioned "means-testing" for SS in the future. So if you saved in an IRA/401k, their approach may well be to limit what they pay you in SS, regardless of whether you paid in the maximum every year or not.
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They are already doing "means testing" in a way. Not limiting what you receive in SS benefits but by taxing your SS benefits. If you saved as you should in an IRA or 401K, when you start withdrawals the amount you withdraw (besides being taxed at earned income rates) also can cause up to 85% of your SS benefit to be taxes at earned income rates.
The real problem as usual with anything congress does is the unintended consequences. When the law was passed in the 1980's the income threshold for taxing SS was relatively high but the threshhold amount was not indexed to inflation so now if you have any kind of retirement income at all you can bet some of your SS benefits will also be taxed.