Does anyone know how Government Pension Offset is figured with a 401a? I can't figure it out from the SS site.
I have a regular job from which SS is taken out. I am also the higher earning spouse.
My husband works for a state university and has a 401a with no SS taken out. This is a second career for him, but he does not have the 30 years of substantial earnings to offset WEP. His job was initially a 1 year position that offered either a 401a that would 100% vest year one, or a pension that would vest year 5. He obviously chose the 401a. But then they extended his contract by a year and then another year, and then created a full time for him.
Unfortunately, you can only choose your retirement option once. So he'll have the 401a and no SS.
He would have a nice spousal SS benefit from me though!
I understand how the GPO works with a pension - but how does it work with a 401a that does not have a defined benefit? Is it just a 2/3 reduction based on how much he might withdraw from his 401a?
I'm itching to make a job change that would result in lower stress/also lower pay and therefor reduced social security in the future and my main concern is how this would affect my spouse as the lower earner. I'm trying to weigh how much his spousal benefit should be taken into consideration.
Thanks for any help!
I have a regular job from which SS is taken out. I am also the higher earning spouse.
My husband works for a state university and has a 401a with no SS taken out. This is a second career for him, but he does not have the 30 years of substantial earnings to offset WEP. His job was initially a 1 year position that offered either a 401a that would 100% vest year one, or a pension that would vest year 5. He obviously chose the 401a. But then they extended his contract by a year and then another year, and then created a full time for him.
Unfortunately, you can only choose your retirement option once. So he'll have the 401a and no SS.
He would have a nice spousal SS benefit from me though!
I understand how the GPO works with a pension - but how does it work with a 401a that does not have a defined benefit? Is it just a 2/3 reduction based on how much he might withdraw from his 401a?
I'm itching to make a job change that would result in lower stress/also lower pay and therefor reduced social security in the future and my main concern is how this would affect my spouse as the lower earner. I'm trying to weigh how much his spousal benefit should be taken into consideration.
Thanks for any help!
Statistics: Posted by starbright_tacos — Thu Jun 13, 2024 2:35 pm — Replies 4 — Views 308
