Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

How will tax-deferred savings affect Social Security benefits for employees who are paying FICA tax?

April 26, 2017affect Benefits employees FICA paying savings social security tax tax-deferred

0

Posted

How will tax-deferred savings affect Social Security benefits for employees who are paying FICA tax?

1 Answer

0

Posted

Contributions to the Deferred Compensation Plan will not affect either Social Security contributions or benefits. This is because FICA tax is based on the gross earnings before Deferred Compensation deductions are taken.