No. of Recommendations: 3
I'll take the bait! Doesn't the insured income limit only apply to earned income subject to OASDI taxes?

Yes. That's my point. If you earn $50k, and $1k of that is considered Section 125 earnings (i.e. insurance premiums, etc.), to the SSA, it appears as though you only earned $49k, not $50k. That will lead to a slightly lower SS retirement benefit than if all $50k were counted as earnings.

My memory might be a little hazy but it always seemed that my OASDI taxes didn't stop until my earned income less my Section 125 plan contributions exceeded Social Security's maximum insured income for the year.

As I said - the issue is for those who DON'T max out the OASDI limit. If you are/were maxing it out, then there's no impact to the SS benefit.

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