What to know about social security and social comparison (Finance)
Social Security is the federal government’s retirement program for workers and retirees.
It provides a benefit of $1,600 per month for individuals and $3,300 per month to employees.
In 2017, it paid out $2.3 trillion to employees, retirees and dependents.
Social comparison is the Social Security comparison tool, which allows you to compare a certain income level to your income from a different source.
The tool works the same way as your employer’s payroll or tax returns, except instead of comparing your income to your employer, the tool compares it to your total assets.
For example, if you have $1 million in assets, and your Social Security tax liability is $600 per year, you’d need to have $2 million in total assets to be eligible for Social Security.
So, what are the benefits and drawbacks of Social Security and Social comparison?
Benefits There are a number of benefits to Social Security compared to other retirement plans, including: Taxable benefits are paid out regardless of your actual income.
This is similar to the tax benefit for 401(k)s, which can be paid regardless of the amount of your retirement plan.
You don’t have to worry about paying income tax on your money.
The amount you contribute to Social Comparison and Social Security will be deducted from your taxable income.
For instance, if your total taxable income is $1.2 million, you can contribute $500 to Social comparison and $200 to Social security.
Social Security doesn’t pay for medical expenses.
In fact, the benefits are not taxed until you reach age 70½.
This means if you die before age 70, you don’t pay Social Security taxes on the amount you contributed to Social comparisons.
