Hello Larry-My wife turned 62 last year and is collecting SS benefits. She is, of course, limited to the $15720 annual earnings limit. My question is this: my wife will earn around 17K this year if she maintains her part time work schedule as it is now. If she makes an IRA contribution of at least the amount she earns over $15720, will that prevent SS from withholding money for having gone over the earnings limit or does SS only look at total earned income?
Thank you...........Dave

Hi Dave,

The answer is no. Social Security counts the gross wages on W-2 forms, plus any net earnings from self-employment, for earnings test purposes.

Best, Jerry