Are 401(k) Withdrawals Considered Income For Social Security Taxation?

Are 401(k) withdrawals considered income for Social Security? Yes, 401(k) withdrawals are considered income when determining the taxability of your Social Security benefits. At income-partners.net, we help you understand how retirement income streams impact your overall financial strategy. Understanding these interactions is critical for smart retirement planning and optimizing your income potential.

Navigating the complexities of retirement income can be challenging; that’s where income-partners.net steps in, offering insights into tax-efficient strategies, income optimization techniques, and Social Security planning to help you maximize your financial well-being.

1. How Do 401(k) Withdrawals Interact With Social Security Benefits?

Yes, 401(k) withdrawals can affect whether your Social Security benefits are taxable, but they don’t directly reduce the amount of your monthly Social Security payment. Understanding how these two income sources interact is essential for retirement planning.

Social Security Benefits Calculation: Social Security benefits are based on your earnings history during your working years. The Social Security Administration (SSA) calculates your benefit amount using a formula that considers your highest 35 years of earnings.
401(k) Withdrawals and Taxability of Social Security: While 401(k) withdrawals don’t change the underlying calculation of your Social Security benefits, they do impact your total annual income. If your combined income exceeds certain thresholds, a portion of your Social Security benefits may become taxable.
- Combined income includes your adjusted gross income (AGI), nontaxable interest, and one-half of your Social Security benefits. AGI includes wages, dividends, and distributions from retirement accounts like 401(k)s and IRAs.
Tax Thresholds: The taxability of Social Security benefits depends on your filing status and combined income:
- Single: If your combined income is between $25,000 and $34,000, up to 50% of your Social Security benefits may be taxable. If it exceeds $34,000, up to 85% may be taxable.
- Married Filing Jointly: If your combined income is between $32,000 and $44,000, up to 50% of your Social Security benefits may be taxable. If it exceeds $44,000, up to 85% may be taxable.
- Married Filing Separately: You likely will pay taxes on your benefits, regardless of income.
Strategies to Minimize Tax Impact:
- Roth Conversions: Converting traditional 401(k) funds to a Roth IRA can reduce future tax liabilities, as Roth distributions are generally tax-free in retirement.
- Careful Withdrawal Planning: Managing the timing and amount of your 401(k) withdrawals can help you stay below the income thresholds that trigger Social Security taxation.
- Tax-Advantaged Investments: Consider investments that generate tax-exempt income, such as municipal bonds, to reduce your overall tax burden.
Example: Suppose John, a single retiree, receives $20,000 in Social Security benefits and withdraws $30,000 from his 401(k). His combined income is $40,000 ($30,000 AGI + $10,000 (half of Social Security benefits)). Since his combined income exceeds $34,000, up to 85% of his Social Security benefits may be taxable.

2. What’s The Difference Between Social Security And 401(k) Income?

Social Security and 401(k) income represent distinct components of retirement funding, each with its own rules and tax implications. Understanding their differences is vital for effective retirement planning.

Social Security:
- Funding: Social Security is funded through payroll taxes, where both employees and employers contribute. Self-employed individuals pay both portions of the tax.
- Benefit Calculation: Benefits are calculated based on your lifetime earnings, with higher earners generally receiving larger benefits. The SSA uses a formula to determine your primary insurance amount (PIA), which is the benefit you’re entitled to at your full retirement age (FRA).
- Taxation: Social Security benefits may be taxable, depending on your combined income. The taxation thresholds are set by the IRS and can change annually.
- Cost of Living Adjustments (COLA): Social Security benefits are subject to annual COLAs, which help protect retirees from inflation by increasing benefits to match rising living costs.
- Eligibility: To qualify for Social Security retirement benefits, you need to earn 40 credits, which is equivalent to 10 years of work.
401(k):
- Funding: 401(k) plans are employer-sponsored retirement savings plans. Employees can contribute a portion of their pre-tax or post-tax income, and some employers offer matching contributions.
- Investment: Contributions are invested in a variety of assets, such as stocks, bonds, and mutual funds. The growth of your 401(k) depends on the performance of these investments.
- Taxation: Traditional 401(k) contributions are made with pre-tax dollars, reducing your current taxable income. However, withdrawals in retirement are taxed as ordinary income. Roth 401(k) contributions are made with post-tax dollars, and qualified withdrawals in retirement are tax-free.
- Withdrawals: You can typically start withdrawing from your 401(k) at age 59 1/2. Withdrawals before this age may be subject to a 10% penalty, as well as income tax.
- Required Minimum Distributions (RMDs): Once you reach a certain age (currently 73), you are required to take RMDs from your traditional 401(k) each year. The amount of the RMD is based on your account balance and life expectancy.
Key Differences in a Table:

Feature	Social Security	401(k)
Funding	Payroll taxes	Employee contributions, employer matching contributions (optional)
Benefit Calculation	Based on lifetime earnings	Based on investment performance
Taxation	May be taxable depending on combined income	Traditional: Taxed as ordinary income upon withdrawal; Roth: Qualified withdrawals are tax-free
Cost of Living Adjustments	Yes	No
Withdrawals	Benefits paid monthly after retirement	Withdrawals typically begin at age 59 1/2
Required Minimum Distributions	No	Yes, after age 73

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3. How Do 401(k) Savings Impact The Tax You Pay?

The tax implications of 401(k) savings are a critical consideration for retirement planning. The way you contribute to and withdraw from your 401(k) can significantly affect your tax liabilities in retirement.

Traditional 401(k) vs. Roth 401(k): The primary difference between these two types of 401(k) plans lies in when you pay taxes:
- Traditional 401(k): Contributions are made with pre-tax dollars, which means they reduce your taxable income in the year you make them. However, withdrawals in retirement are taxed as ordinary income.
- Roth 401(k): Contributions are made with post-tax dollars, so you don’t get an upfront tax deduction. However, qualified withdrawals in retirement, including both contributions and earnings, are tax-free.
Tax Benefits of Traditional 401(k) Contributions:
- Reduced Taxable Income: Contributing to a traditional 401(k) lowers your current taxable income, which can result in immediate tax savings.
- Tax-Deferred Growth: Your investments grow tax-deferred, meaning you don’t pay taxes on the earnings until you withdraw them in retirement.
- Example: If you contribute $10,000 to a traditional 401(k) and are in the 22% tax bracket, you’ll reduce your current tax bill by $2,200 ($10,000 x 0.22).
Tax Implications of 401(k) Withdrawals:
- Ordinary Income Tax: Withdrawals from a traditional 401(k) are taxed as ordinary income in retirement. The tax rate depends on your income bracket in the year of the withdrawal.
- Early Withdrawal Penalties: If you withdraw funds from your 401(k) before age 59 1/2, you may be subject to a 10% early withdrawal penalty, in addition to income tax.
- Required Minimum Distributions (RMDs): Once you reach age 73, you must take RMDs from your traditional 401(k). These withdrawals are also taxed as ordinary income.
Roth 401(k) Advantages:
- Tax-Free Withdrawals: Qualified withdrawals from a Roth 401(k) in retirement are entirely tax-free, providing significant tax savings.
- Tax Diversification: Having a Roth 401(k) can provide tax diversification in retirement, allowing you to manage your tax liabilities more effectively.
- No RMDs for Roth 401(k)s: While RMDs apply to traditional 401(k)s, they do not apply to Roth 401(k)s, offering more flexibility in managing your retirement funds.
Strategies to Minimize Taxes on 401(k) Savings:
- Consider a Roth Conversion: Converting traditional 401(k) funds to a Roth IRA can be a tax-efficient strategy, especially if you expect to be in a higher tax bracket in retirement.
- Plan Your Withdrawals: Strategically plan your 401(k) withdrawals to minimize your tax liability. Consider withdrawing smaller amounts each year to stay in a lower tax bracket.
- Utilize Tax-Advantaged Accounts: Maximize contributions to tax-advantaged accounts, such as health savings accounts (HSAs), to further reduce your taxable income.
Example: Sarah contributes $5,000 annually to a Roth 401(k) for 20 years. Her investments grow to $200,000 by the time she retires. When she withdraws the funds in retirement, she pays no income tax on the $200,000, thanks to the Roth 401(k)’s tax-free withdrawal benefit.

4. How Does The SSA Determine Social Security Benefits?

The Social Security Administration (SSA) determines your retirement benefits through a complex calculation that takes into account your earnings history. Understanding this process can help you estimate your future benefits and plan accordingly.

Earnings History:
- The SSA tracks your earnings throughout your working life based on the information reported by your employers. This information is used to calculate your Average Indexed Monthly Earnings (AIME).
- Only earnings subject to Social Security taxes are included in the calculation.
Average Indexed Monthly Earnings (AIME):
- The AIME is calculated by adjusting your past earnings to reflect changes in the average wage level over time. This ensures that your earlier earnings are given appropriate weight in the benefit calculation.
- The SSA uses up to 35 years of your highest indexed earnings to calculate the AIME. If you have fewer than 35 years of earnings, the SSA will include zeros for the missing years, which can lower your AIME.
Primary Insurance Amount (PIA):
- The PIA is the benefit amount you are entitled to receive at your full retirement age (FRA). The FRA is 67 for those born in 1960 or later.
- The SSA uses a formula to calculate the PIA based on your AIME. This formula is designed to provide a higher percentage of replacement income for lower-income workers.
Benefit Calculation Formula:
- The PIA formula is progressive, meaning it provides a higher percentage of income replacement for lower earners. For example, the 2024 formula is:
  - 90% of the first $1,174 of AIME
  - 32% of AIME between $1,174 and $7,078
  - 15% of AIME over $7,078
Early or Delayed Retirement:
- You can start receiving Social Security benefits as early as age 62, but your benefit amount will be reduced for each month you claim before your FRA.
- If you delay claiming benefits past your FRA, your benefit amount will increase by a certain percentage for each year of delay, up to age 70.
Cost of Living Adjustments (COLA):
- Social Security benefits are subject to annual COLAs, which help protect retirees from inflation. The COLA is based on the Consumer Price Index for Wage Earners and Clerical Workers (CPI-W).
- The COLA can significantly increase your benefit amount over time, especially during periods of high inflation.
Example: Suppose Mary worked for 35 years and has an AIME of $5,000. Using the 2024 PIA formula:
- 90% of the first $1,174 = $1,056.60
- 32% of the AIME between $1,174 and $5,000 = $1,224.32
- Her PIA would be $1,056.60 + $1,224.32 = $2,280.92 per month.
Strategies to Maximize Your Social Security Benefits:
- Work for at Least 35 Years: The SSA uses your 35 highest-earning years to calculate your benefits. Working for at least 35 years can help ensure that you don’t have any zero-earning years included in the calculation.
- Delay Claiming Benefits: If possible, delay claiming Social Security benefits until your full retirement age or later to maximize your benefit amount.
- Increase Your Earnings: Higher earnings throughout your career will result in a higher AIME and, consequently, a higher PIA.
- Monitor Your Earnings Record: Review your earnings record on the SSA website to ensure that it is accurate.

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5. Can Other Types Of Retirement Income Affect Your Social Security?

Yes, other types of retirement income can indeed affect your Social Security benefits, although the direct impact varies depending on the source of the income and certain provisions in place. It’s important to understand these interactions to effectively plan your retirement finances.

Government Pension Offset (GPO):
- The GPO primarily affects individuals who receive benefits based on their spouse’s work record and also receive a government pension from employment not covered by Social Security.
- The GPO reduces your Social Security spousal or survivor benefits by two-thirds of the amount of your government pension. This provision is designed to prevent individuals from receiving duplicate benefits.
- Example: If you receive a $900 monthly government pension from non-covered employment, your Social Security spousal benefit would be reduced by $600 (2/3 of $900).
Windfall Elimination Provision (WEP):
- The WEP affects individuals who receive Social Security benefits based on their own work record and also receive a pension from employment not covered by Social Security.
- The WEP reduces the amount of your Social Security retirement or disability benefits. The reduction is based on a formula that considers your years of substantial earnings covered by Social Security.
- The WEP does not apply if you have 30 or more years of substantial earnings covered by Social Security.
- Example: If you have fewer than 20 years of substantial earnings covered by Social Security, your Social Security benefit could be reduced by up to 50% of your pension from non-covered employment.
Earned Income:
- If you continue to work while receiving Social Security benefits, your earnings can affect your benefit amount, especially if you are under your full retirement age (FRA).
- The Social Security Administration (SSA) may reduce your benefits if your earnings exceed certain limits. In 2024, the earnings limit is $22,320 for those under FRA. For every $2 you earn above this limit, your benefits will be reduced by $1.
- In the year you reach FRA, the earnings limit is higher ($59,520 in 2024), and the SSA reduces your benefits by $1 for every $3 you earn above this limit.
- Once you reach FRA, there is no limit on how much you can earn without affecting your Social Security benefits.
Investment Income:
- Investment income, such as dividends, interest, and capital gains, does not directly reduce your Social Security benefits.
- However, investment income can affect the taxability of your Social Security benefits. If your combined income (including investment income) exceeds certain thresholds, a portion of your Social Security benefits may be subject to federal income tax.
401(k) and IRA Withdrawals:
- Withdrawals from traditional 401(k)s and IRAs are considered taxable income and can affect the taxability of your Social Security benefits.
- Roth 401(k) and Roth IRA withdrawals, on the other hand, are generally tax-free and do not affect the taxability of your Social Security benefits.
Annuities:
- The taxation of annuity payments depends on whether the annuity was purchased with pre-tax or after-tax dollars.
- If the annuity was purchased with pre-tax dollars, the entire payment is taxable as ordinary income. If it was purchased with after-tax dollars, only the earnings portion of the payment is taxable.
- Taxable annuity payments can affect the taxability of your Social Security benefits.
Strategies to Minimize the Impact of Other Retirement Income:
- Plan Your Retirement Income Streams: Strategically plan your retirement income streams to minimize your overall tax liability and the impact on your Social Security benefits.
- Consider Roth Conversions: Converting traditional retirement accounts to Roth accounts can reduce your future tax liabilities and the potential impact on your Social Security benefits.
- Manage Your Earnings: If you plan to work while receiving Social Security benefits, manage your earnings to stay below the earnings limits and avoid benefit reductions.
- Consult a Financial Advisor: Work with a qualified financial advisor to develop a comprehensive retirement plan that considers all sources of income and their potential impact on your Social Security benefits.
Table Summarizing the Impact of Different Types of Income:

Type of Retirement Income	Direct Impact on Social Security Benefits	Impact on Taxability of Social Security Benefits
Government Pension Offset (GPO)	Reduces spousal/survivor benefits	No direct impact
Windfall Elimination Provision (WEP)	Reduces retirement/disability benefits	No direct impact
Earned Income (Under FRA)	May reduce benefits if over earnings limit	No direct impact
Investment Income	No direct impact	Can increase the taxability of benefits
Traditional 401(k)/IRA Withdrawals	No direct impact	Can increase the taxability of benefits
Roth 401(k)/IRA Withdrawals	No direct impact	No impact
Annuities (Pre-Tax)	No direct impact	Can increase the taxability of benefits
Annuities (After-Tax)	No direct impact	Can increase the taxability of benefits

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6. Will Working In Retirement Reduce Social Security Benefits?

Yes, working in retirement can reduce your Social Security benefits if you are under your full retirement age (FRA), but this reduction is temporary. Understanding the rules around working while receiving Social Security can help you make informed decisions about your retirement income.

Earnings Limits:
- The Social Security Administration (SSA) has earnings limits for beneficiaries who are under their FRA. If your earnings exceed these limits, your Social Security benefits will be reduced.
- In 2024, the earnings limit for those under FRA is $22,320. For every $2 you earn above this limit, your Social Security benefits will be reduced by $1.
- In the year you reach FRA, the earnings limit is higher ($59,520 in 2024). For every $3 you earn above this limit, your Social Security benefits will be reduced by $1.
- Once you reach FRA, there is no limit on how much you can earn without affecting your Social Security benefits.
How Earnings Affect Your Benefits:
- If your earnings exceed the applicable limit, the SSA will reduce your Social Security benefits by the specified amount. This reduction is temporary and only applies until you reach FRA.
- The SSA uses your annual earnings to determine the reduction in your benefits. If your earnings fluctuate from year to year, the reduction in your benefits will also vary.
Example: Suppose you are 63 years old and claim Social Security benefits. In 2024, you earn $30,000 from part-time work. Since the earnings limit is $22,320, your earnings exceed the limit by $7,680. The SSA will reduce your benefits by $3,840 ($7,680 / 2).
The Year You Reach Full Retirement Age:
- In the year you reach FRA, the earnings limit is higher, and the reduction in your benefits is less severe.
- For example, if you reach FRA in 2024 and earn $65,000, your earnings exceed the limit by $5,480. The SSA will reduce your benefits by $1,826.67 ($5,480 / 3).
After Full Retirement Age:
- Once you reach FRA, there is no limit on how much you can earn without affecting your Social Security benefits. You can work as much as you want without any reduction in your benefits.
- Additionally, the SSA will recalculate your benefit amount to account for any earnings that were not included in the original calculation. This recalculation can result in a higher monthly benefit.
Strategies to Manage Earnings and Social Security:
- Stay Below the Earnings Limit: If you are under FRA and want to avoid a reduction in your Social Security benefits, try to keep your earnings below the annual limit.
- Consider Delaying Social Security: If you plan to continue working in retirement, consider delaying claiming Social Security benefits until your FRA or later. This will allow you to avoid the earnings limits and potentially increase your benefit amount.
- Manage Your Work Hours: Adjust your work hours to stay below the earnings limit while still enjoying the benefits of working in retirement.
- Consult a Financial Advisor: Work with a qualified financial advisor to develop a retirement plan that considers your earnings, Social Security benefits, and other sources of income.
Table Summarizing Earnings Limits and Benefit Reductions:

Status	Earnings Limit (2024)	Benefit Reduction
Under Full Retirement Age	$22,320	$1 for every $2 over
Year Reaching Full Retirement Age	$59,520	$1 for every $3 over
At or Above Full Retirement Age	No Limit	No Reduction

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7. Should I Use My 401(k) Before Taking Social Security?

Deciding whether to use your 401(k) before taking Social Security is a complex decision that depends on your individual circumstances, financial goals, and risk tolerance. There is no one-size-fits-all answer, but understanding the key considerations can help you make an informed choice.

Factors to Consider:
- Age and Health: Your age and health can significantly influence your decision. If you are in good health and expect to live a long life, delaying Social Security may be a better option.
- Financial Needs: Assess your current and future financial needs. If you need income to cover your expenses, you may need to start withdrawing from your 401(k) before taking Social Security.
- Tax Situation: Consider your current and future tax situation. Withdrawing from your 401(k) can increase your taxable income, potentially affecting the taxability of your Social Security benefits.
- Investment Returns: Evaluate the potential returns on your 401(k) investments. If you expect high returns, it may be beneficial to delay withdrawals and allow your investments to grow.
- Risk Tolerance: Assess your risk tolerance. If you are comfortable with market risk, you may be willing to delay withdrawals from your 401(k) and allow your investments to grow.
- Required Minimum Distributions (RMDs): Keep in mind that you will eventually be required to take RMDs from your 401(k), which could impact your tax situation.
Potential Benefits of Using Your 401(k) First:
- Delaying Social Security: Delaying Social Security can result in a higher monthly benefit amount, which can provide more financial security in the long run.
- Tax Planning: Withdrawing from your 401(k) in smaller amounts can help you manage your tax liability and potentially stay in a lower tax bracket.
- Flexibility: Accessing your 401(k) funds can provide you with more flexibility to cover unexpected expenses or pursue your retirement goals.
Potential Benefits of Delaying 401(k) Withdrawals:
- Tax-Deferred Growth: Delaying withdrawals allows your 401(k) investments to continue growing tax-deferred, potentially increasing your retirement savings.
- Avoiding Early Withdrawal Penalties: If you are under age 59 1/2, delaying withdrawals can help you avoid the 10% early withdrawal penalty.
- Maintaining Financial Security: Keeping your 401(k) funds invested can provide you with a larger financial cushion in case of unexpected expenses or market downturns.
Strategies to Consider:
- Partial Withdrawals: Consider taking partial withdrawals from your 401(k) to supplement your income while delaying Social Security.
- Roth Conversions: Convert traditional 401(k) funds to a Roth IRA to reduce your future tax liabilities and potentially increase your retirement income.
- Annuities: Purchase an annuity to provide a guaranteed stream of income while delaying Social Security.
- Work Part-Time: Continue working part-time to supplement your income and delay withdrawals from your 401(k) and Social Security.
Example: John is 62 years old and considering whether to start taking Social Security benefits or withdraw from his 401(k). He decides to delay Social Security until age 70, which will result in a higher monthly benefit. In the meantime, he takes partial withdrawals from his 401(k) to cover his expenses.
Table Summarizing the Pros and Cons:

Strategy	Pros	Cons
Use 401(k) First (Delay Social Security)	Higher Social Security benefit, tax planning flexibility	Potential for higher taxable income, risk of depleting savings
Delay 401(k) Withdrawals (Take Social Security)	Continued tax-deferred growth, avoids early withdrawal penalties	Lower Social Security benefit, less flexibility

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8. Maximizing Retirement Income

Planning for retirement requires careful consideration of how different income streams interact. Here’s how to make informed decisions about your 401(k) and Social Security benefits:

Understand the Impact of 401(k) Withdrawals:
- Tax Implications: 401(k) withdrawals are generally taxed as ordinary income, which can increase your overall tax burden. Roth 401(k) withdrawals, however, are tax-free if certain conditions are met.
- Social Security Taxation: 401(k) withdrawals can increase your combined income, potentially making a larger portion of your Social Security benefits taxable.
- Planning Strategies:
  - Roth Conversions: Converting traditional 401(k) funds to a Roth IRA can reduce future tax liabilities, as Roth distributions are generally tax-free.
  - Withdrawal Timing: Managing the timing and amount of your 401(k) withdrawals can help you stay below income thresholds that trigger higher taxes on Social Security benefits.
Social Security Optimization:
- Delaying Benefits: Delaying Social Security benefits can significantly increase your monthly payment. For example, delaying from age 62 to 70 can increase your benefit by as much as 24% to 32%.
- Earnings Limit: Be aware of the earnings limit if you plan to work while receiving Social Security benefits. Exceeding the limit can reduce your benefits if you are under full retirement age.
- Spousal Benefits: Understand how spousal benefits work, particularly if you are divorced or have a spouse with a lower earning history.
Coordination Between 401(k) and Social Security:
- Assess Financial Needs: Determine your essential expenses and desired lifestyle in retirement. This will help you estimate how much income you need from your 401(k) and Social Security.
- Create a Withdrawal Strategy: Develop a withdrawal strategy that balances your current income needs with long-term financial security.
- Consider a Financial Advisor: A financial advisor can help you navigate the complexities of retirement planning and develop a personalized strategy that meets your specific needs.
Leveraging Income-Partners.net
- Access Expert Insights: income-partners.net provides valuable insights into various retirement income strategies and the latest updates on Social Security regulations.
- Find Partnership Opportunities: Discover opportunities to partner with financial professionals who can offer tailored advice on optimizing your retirement income.
- Stay Informed: Stay informed about changes in tax laws and regulations that may impact your retirement planning.
Real-Life Example:
- Case Study: Consider a retiree named Sarah who has a traditional 401(k) and is eligible for Social Security benefits. By working with a financial advisor, Sarah developed a strategy to:
  1. Delay Social Security: Delay claiming Social Security until age 70 to maximize her monthly benefit.
  2. Roth Conversions: Gradually convert a portion of her traditional 401(k) to a Roth IRA each year to reduce future tax liabilities.
  3. Manage Withdrawals: Carefully manage her 401(k) withdrawals to stay below the income thresholds that would trigger higher taxes on her Social Security benefits.
Tools and Resources:
- Social Security Administration (SSA): Use the SSA’s online tools to estimate your future benefits and understand your options.
- Financial Planning Software: Utilize financial planning software to model different retirement scenarios and assess the impact of various decisions on your income and taxes.

9. Social Security Fairness Act And Its Potential Impact

The Social Security Fairness Act, officially signed into law on January 5, 2025, addresses the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These provisions have historically reduced Social Security benefits for individuals who also receive pensions from employment not covered by Social Security. Understanding the potential impact of this act is crucial for those affected.

Background on WEP and GPO:
- Windfall Elimination Provision (WEP):
  - The WEP reduces Social Security benefits for individuals who receive a pension from employment not covered by Social Security (e.g., some government employees).
  - The WEP formula can result in a lower Social Security benefit than what individuals would otherwise receive based on their earnings history.
- Government Pension Offset (GPO):
  - The GPO reduces Social Security spousal or survivor benefits for individuals who also receive a government pension from employment not covered by Social Security.
  - The GPO can significantly reduce or even eliminate Social Security benefits for affected individuals.
Key Provisions of the Social Security Fairness Act:
- Elimination of WEP and GPO: The Social Security Fairness Act eliminates the WEP and GPO, allowing affected individuals to receive their full Social Security benefits without reductions.
- Benefit Restoration: The act includes provisions to restore benefits to individuals who have had their Social Security benefits reduced due to the WEP