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Accomplished_Ant7702 t1_j2b9mn2 wrote

Reply to comment by Wilt_The_Stilt_ in Weekend Help and Victory Thread for the week of December 30, 2022 by IndexBot

There is a federal cap on the social security - you exceeded $147K in income a few paychecks ago by my calculations if you are paid biweekly and were paying $400/pay. Anything above that would not have SS taken out. It will start up again on your first 2023 paycheck. The 2023 limit will be $160,200 by the way.

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Wilt_The_Stilt_ t1_j2bc3oo wrote

Ahh that’s it! Thank you!

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techcaleb t1_j2e6ih0 wrote

And just one word of warning: that cap also effectively applies when you go to take social security as well. So instead of the replacement rate being based off your actual income, it will be based off of the capped income. This means that to maintain a similar lifestyle in retirement you may need to increase your retirement contributions.

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Wilt_The_Stilt_ t1_j2e6r18 wrote

Super helpful add on. Thank you! Makes a ton of sense when I read it but definitely didn’t cross my mind before.

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