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This question is about salaries.
Do 401k contributions reduce social security benefits?
No, 401(k) contributions do not reduce social security benefits. This is the simple answer. However, if your yearly income exceeds a specific threshold, you might have to pay taxes on a portion or all of your benefits, meaning your 401 (k) contributions could make that happen.
Social Security benefits are accrued based on the money you earn while working before retirement. You pay into the Social Security system via Social Security taxes. Contributions to your 401 (k) are made with money you have earned from working for a United States company.
This means you have already paid Social Security taxes on that same income, so your Social Security benefits do not have a chance of being reduced by it
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